How to calculate the annualized rate of financial management?

The annualized rate of return on wealth management is the theoretical rate of return obtained by converting the current rate of return on wealth management products into the annual rate of return, rather than the actual rate of return. The income calculated by annualized rate of return can only be used as a reference.

The reference interest rate of annualized rate of return for general financial management can be daily rate of return, weekly rate of return and monthly rate of return, with annualized rate of return = daily rate of return *360= weekly rate of return /7*360= monthly rate of return * 12.

For example, if the actual monthly yield of a wealth management product is 0.3%, then the annualized yield is 0.3%* 12=3.6%.

The annualized interest rate is the interest rate discounted to the whole year through the inherent rate of return of products. In other words, daily interest rate, monthly interest rate, etc. They are all "converted" into the real annual interest rate that bears interest once a year, so the annualized interest rate is equal to the real interest rate.

At present, wealth management products below 6% are relatively safe. In the future, under the general trend of falling interest rates, it is estimated that 5% is a relatively guaranteed annualized income from financial management.

Now the most profitable wealth management product is probably the smart deposit of private banks, and its annualized rate of return can reach 5.5%! In addition, I have never seen a wealth management product with higher capital preservation. Those products that claim to achieve an annualized rate of more than 6 or even 10% are expected returns, and most of them are high-risk wealth management products that do not break the capital.

Of course, index funds or stocks have the highest returns, and the annualized returns can reach 10%, and even reach more than 30% in some years! But their risks are still great. Without certain professional ability and long-term holding, it is difficult to obtain such high returns.

Generally speaking, the yield of national debt is the most stable, but the yield of national debt is only between 4-5%. Because the lower the risk, the lower the corresponding income. The yield of national debt is the most stable and risk-free among all wealth management products. Because it is guaranteed by national credit.

As I said just now, the highest bank deposits are five-year time deposits of private banks or small banks. The five-year deposits of large state-owned banks can hardly exceed 5%.

The yields of money funds and bond funds are currently around 2.7%, which is the representative of low risk.

Some corporate bonds will earn more than 6% annually, but the risk is high. Some enterprises may not be able to repay their debts.

There are also trusts that can reach more than 8%, but trust wealth management products also have risks and cannot protect the principal and interest.

In short, 6% is the dividing line for purchasing wealth management products. More than 6% of wealth management products must be cautious, because it is almost certain to be risky. Of course, less than 6% is safer, and now the balance treasure is around 2%