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What does annualized rate of return mean?
Hello, the annualized rate of return means that the income of 100 yuan is 4.57 yuan. Generally, the income of one day, one week, 14 days is too little, which is not good-looking and not easy to calculate. Let's enlarge it. If the annualized rate of return is 4.57%, the daily income of 100 yuan is 4.75/360 = 0.013194 yuan.

1, annualized rate of return only converts the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into annual rate of return. It is the theoretical rate of return, not the actual rate of return. Annualized rate of return The annualized rate of return converted from the net income of every 65,438+00,000 fund units in the past 7 days. The annualized rate of return refers to the rate of return obtained when the investment period is one year. Annual income = [(return on investment/principal)/investment days ]*365× 100% annualized income = principal× annualized rate of return Actual income = principal× annualized rate of return× investment days /365.

2. Not only bank deposits have an annualized rate of return, but also funds have an annualized rate of return. The annualized income of the fund refers to the income brought by the fund. For example, the annualized rate of return of a fund is 80%, that is, investors can theoretically enjoy 80% of the income from buying and holding at the beginning of the year to the end of the year. Buy 10000 and earn 8000 a year. Because the income of the fund is floating, not fixed, so in practice, the value-added of the fund is the annualized rate of return of the fund. The greater the increase of the fund, the higher the return on investment of the fund in that year; On the contrary, the fund's annual growth rate is low, indicating that the fund's return on investment is low.

3. In addition, some money funds show "7-day annualized rate of return", which refers to the average rate of return of funds in the last 7 days. For example, the 7-day annualized rate of return is 3%, and the 7-day annualized rate of return of 10000 yuan is 10000 yuan× 3% ÷ 365× 7 = 5.75 yuan. In addition, some bond funds may use expected annualized rate of return. Investors should know that the expected annualized rate of return does not represent the actual rate of return, because the expected annualized rate of return represents expectations, and there may be variables in the middle.

Generally speaking, there are two ways to express annualized rate of return. The first is the actual annualized rate of return; The other is the expected annualized rate of return. The two express different meanings. Generally speaking, generally speaking, the actual annualized rate of return: for example, after buying a fund or stock, you can calculate the annualized rate of return according to how much money you earn in a year. For example, the annualized rate of return of a fund is 80%, that is, investors can theoretically enjoy 80% of the income from the beginning of the year to the end of the year. Buy 10000 and earn 8000 a year.