What is the difference between the establishment of this year and the performance benchmark?
1 annualized rate of return of the fund = (income/principal)/(investment days /365 days) × 100%, that is, the annualized rate of return obtained since the establishment of the wealth management product is converted into annualized rate of return.
2 Fund performance benchmark is mainly used for net worth wealth management products, which is the expected income of investors according to the past performance of products or the historical performance of similar products. The benchmark of fund performance is an important index to measure the relative income of fund performance, and also reflects the investment level of fund managers from the side.
Simply put, the fund performance benchmark is equivalent to the "small target" and "passing line" of the future income of wealth management products. Exceeding is excellent, and failing means continuing to work hard.
From the perspective of long-term investment, performance benchmark is more reliable than seven-day annualized. Because this is the annualized rate of return target of financial institutions based on product investment evaluation. However, it should be noted that the annualized rate of return of many wealth management products can not reach the performance benchmark, so the performance benchmark is only for reference.
Generally speaking, the annualization since its establishment is the annualized rate of return calculated based on previous data, which is equivalent to historical performance, while the benchmark of fund performance is the small target of future expectations set by financial institutions, both of which have reference value.