Annualized rate of return The annual rate of return converted from the net income per 10,000 fund shares of the Monetary Fund in the past seven days. There are two ways to carry forward money market funds: 1. "Daily dividends are carried forward on a monthly basis", which is equivalent to daily simple interest and monthly compound interest; 2. "Daily dividends are carried forward daily", which is equivalent to daily compound interest.
To sum up the annualized rate, for example, a wealth management product sold by a bank has an annual yield of 3. 1% per day, so you bought 1 10,000 yuan. In fact, the interest you can get is100000 * 3.1%* 91/365 = 772.88 yuan, definitely not 3 100 yuan. In addition, it should be noted that the general bank's wealth management products do not bear interest on the same day as the bank's time deposits, and the principal and interest are returned at maturity. Financial products include subscription period, liquidation period, etc. During this period, no interest is calculated on the principal or only current interest is calculated. For example, the subscription period of a wealth management product is 5 days, and the maturity date is 5 days apart from the principal repayment settlement period. Then your actual capital occupation is 10 days.
The actual annualized rate of return of funds is only 772.88 * 365/(101*100000) = 2.79%. Assuming that the actual annualized rate of return of funds is y, the equation100000 * (91+10) * y/365 = 772.88, and y = 2.79% can be obtained. The absolute income is 772.88/ 100000 = 0.7728%.
For long-term wealth management products, the time of subscription period and liquidation period can be ignored, but for short-term wealth management products within 7 days or 1 month, this time has a great impact.
For example, a bank's 7-day wealth management product is called annualized rate of return 1.7%, but it needs to occupy at least 8 days of funds, 1.7% * 7/8 = 1.48%, while the bank's 7-day demand deposit and bank demand deposit are far more convenient and stable than ordinary high-risk wealth management products.
Therefore, the annualized rate of return depends not only on its declared figures, but also on the actual income figures.
Among them, the seven-day annualized rate of return is: under different income carry-over methods, the calculation formula of seven-day annualized rate of return should also be different.
There are two ways to carry forward the income of money market funds: one is daily dividend and monthly carry-forward, which is equivalent to daily simple interest and monthly compound interest; The other is a daily dividend, which is carried forward on a daily basis, which is equivalent to daily compound interest. It can be seen that the 7-day annualized rate of return is calculated according to the 7-day rate of return, and the 30-day annualized rate of return is calculated according to the most recent month's rate of return.
The establishment of the index is mainly to provide investors with more intuitive data for their reference when comparing the income of money funds with other investment products.
In this indicator, the rate of return in the past seven days is determined by seven variables. Therefore, the same rate of return in the past seven days does not mean that the net income per 10000 fund units used to calculate seven days is exactly the same.