What is the difference between the expected annualized rate of return and the actual rate of return

The expected annualized rate of return of wealth management products is the rate of return that can be achieved when the wealth management product is established and is converted into a one-year deposit period (because the term of the product may be longer or shorter than one year, which is converted into a one-year rate of return to facilitate comparison of the rate of return), and the actual rate of return is the actual rate of return that can be achieved at the maturity of the wealth management product, which may be higher or lower than the expected annualized rate of return (basically the last two are equal, Because wealth management products generally agree in advance that the actual rate of return is higher than the expected annualized rate of return, the excess part will be used as a management fee, and the actual rate of return is lower than the expected annualized rate of return, and he does not dare, otherwise who will buy his wealth management products next time).

A wealth management product is just an expected rate of return. The word anticipation is already told to you, and it simply means that it is possible. If you look at the brokerage's earnings on wealth management products.

may be easier to understand.

At present, the financial income of the brokerage side cannot be expressed in terms of expected returns, but can only be expressed as comparable returns.

Therefore, the vast majority of wealth management products, in a strict legal sense, do not necessarily bear the risk of making up for the income if they lose or fail to achieve the return. Of course, the protection of the principal by the principal-guaranteed wealth management on the bank side and the principal-protected income certificate on the brokerage side is still protected by law.

Therefore, in addition to looking at the expected rate of return, it is best to look at the investment target (this is very important, most of the general wealth management products are invested in cash assets such as overnight loans, reverse repo of treasury bonds, etc., which is basically very risky), and at the same time, if there is a reference to the past product returns, it will be more referenced.

The expected annualized rate of return in wealth management products is the expected rate of return after maturity. For example, if the wealth management principal is 100,000 yuan, the expected annualized net return on investment in the product is , and the actual wealth management period is 80 days, the expected income of the investor = 100,000 yuan.

Wealth management products are a type of wealth management products designed and issued by commercial banks and formal financial institutions, and the raised funds are invested in the relevant financial market and purchased in accordance with the product contract, and the investment income is obtained, and then distributed to investors according to the contract.

1. Expected annualized rate of return: The annualized rate of return is only calculated by converting the current rate of return (daily rate of return, weekly rate of return, and monthly rate of return) into an adult rate of return, which is a theoretical rate of return, not a real rate of return that has been obtained.

2. Calculation of the expected annualized rate of return:

The annualized rate of return refers to the rate of return obtained for an investment period of one year.

Annualized rate of return = (investment income principal) (investment days 365) 100% annualized return = principal annualized rate of return.

Actual return = principal annualized rate of return 365 <> investment days

1. **Performance benchmark.

It is an important indicator to measure the relative return of performance, and it is the expected goal that you set for yourself. In foreign countries, performance benchmarks are the most important. However, the most important thing in China is the ranking of the best performance.

2. Expected annualized rate of return.

It is the rate of return that the wealth management product hopes to achieve when it is established and is converted into a one-year deposit period (because the term of the product may be longer or shorter than one year, it is easy to compare the yield of one year).

3. The two are not comparable, however, the expected annualized rate of return is generally slightly higher than the comparison benchmark.

Extended Materials. 1. The annualized rate of return is to convert the current rate of return (daily rate of return, weekly rate of return, and monthly rate of return) into an adult rate of return.

What is calculated is a theoretical rate of return, not the rate of return that the real good brother has achieved.

Annualized Yield Currency**.

Net income per 10,000** share in the last seven days.

Converted annual percentage yield. There are two ways to carry forward earnings in the money market**:

1. "Daily dividends, carried forward on a monthly basis", which is equivalent to simple interest every day.

Compound interest every month. 2."Daily dividends, carried forward on a daily basis", which is equivalent to compound interest day by day.

The performance comparison benchmark is mainly used for net-worth wealth management products, which are non-principal-guaranteed floating income products, which means that banks do not promise to protect the capital of hand socks and wisdom, nor do they promise minimum returns.

2. The estimated return of net-worth products is reflected through the performance benchmark, which is the estimated return that the bank calculates based on the previous performance of the product or the historical performance of the same type of product.

Both the performance benchmark and the expected rate of return represent earnings valuations, and when used as historical performance references, the two have great similarities and can be used to calculate an approximate earnings estimate.

For example, if the performance benchmark (expected rate of return) of a product is 5%, then the estimated income of investing 100,000 yuan for a year is 5% * 100,000 = 5,000 yuan.

However, it should be noted that the expected rate of return often has the nature of rigid payment, that is, the actual return after the maturity of the product will not be very different from 5%.

Investment and financial management has always been a hot topic, because money will depreciate at home, and only by investing this part of the money in financial products can you make money and get more returns. There is a netizen who has purchased a wealth management product, so what is the difference between the "expected annualized rate of return" and the "performance comparison standard" in the wealth management product?

Introduction of two nouns.

First of all, we need to understand the specific meaning of these two terms before we know what the difference between the two is. The expected annualized rate of return is that when you buy a wealth management product, the account manager will tell you how much income the wealth management product can get in the next year, and you can compare the income of the wealth management product for one year, and then decide which wealth management product to buy. The performance comparison standard is the comparison between the annualized income obtained by this wealth management product and other financial products in the industry.

The nature is different between the two.

The expected annualized rate of return measures the income of the product, if the expected annualized rate of return is high, then it means that the income obtained by the product is relatively high, and such a product is also worth investing. The performance comparison standard measures the performance of the product, which is an important indicator to measure the relative return of the best performance, and it is especially applicable in foreign countries and has not spread in China. If you want to know how much income this financial product can get in the next year, you can observe the expected annualized rate of return of this financial product.

The role between the two is different.

The expected annualized rate of return refers to the return on investment of a currency over a period of timeThe performance comparison standard is based on historical performance, and then roughly estimate how much income this financial product can obtain in the next year, and it is also an important indicator to measure the relative rate of return of performance. Therefore, if you want to buy wealth management products, understand these two terms, and you will be able to decide which financial product you want to invest in and how to invest.

The performance benchmark is the estimated return that the bank may obtain based on the previous performance of the product, or the historical performance of the same type of product. Expected annualized rate of return: It is a theoretical rate of return, not a real rate of return that has been achieved.

Hello, I already know this question, wait a little while, and the answer will be revealed to you immediately.

There is not much difference between the two, only a few minor differences.

The performance benchmark is now generally on the non-guaranteed floating income wealth management products, and the performance benchmark is generally stated on the manual.

Annualized rate of return, generally when buying wealth management products, the annual rate of return will be written on the manual.

I hope mine, it is helpful to you, please give a thumbs up when you are free, thank you for the consultation.

The performance benchmark is based on the actual calculation of the income, the expected annualized rate of return is calculated in this model, not the actual rate of return, the yardstick performance benchmark is closer to the actual result, Senwang expected annualized rate of return is the expected result.

There will be different concepts, and there will be different income criteria, and there will be different adjustments, including different products, where the interest rate is different.

The time is different, the interest rate is different, the income method is different, the person who buys it is different, and the price is also different, and these two methods have their own benefits.

When investing in financial management, the annualized expected rate of return is the most commonly used concept, the expected annualized expected return is a core reference index for investors to choose financial products, and the actual annualized expected rate of return is an important data to measure the investment effect of investors. So how to calculate the annualized expected rate of return of wealth management?

1. How to calculate the annualized expected rate of return of wealth management

The annualized expected rate of return refers to the expected rate of return obtained for an investment period of one year, which is calculated as follows: annualized expected rate of return = (expected return in investment principal) * (365 investment days) * 100%.

For example, if an investor sells a wealth management product of 10,000 yuan a year later for 10,500 yuan and earns an expected return of 500 yuan, the annualized expected rate of return is: (500 10,000) * (365 365) * 100% = 5%.

In the process of financial management, investors are often exposed to the concept of expected annualized expected rate of return. The expected annualized expected rate of return is a theoretical expected rate of return, rather than the actual expected rate of return, which is generally calculated by converting the current expected rate of return, such as the daily expected rate of return, into the adult expected rate of return.

Investors can expect the expected return on investment in a product after a one-year term based on the expected annualized expected rate of return**. The formula for calculating the expected return of wealth management products is: principal * annualized expected rate of return * investment days 365.

2. Why is the actual expected return lower than the annualized expected rate of return?

1. The investment period is less than 1 year

For example, the annualized expected rate of return of a product is 5%, but the actual investment period of the product is only 30 days, if the investor **10,000 yuan, then the actual expected return that can be obtained after maturity is: 10,000 * 5% * 30 365 41 yuan.

2. **The date is not the first day of calculation of expected return or early redemption

The actual expected return of wealth management products is calculated from the time of **, so if the ** date is not the first day of calculating the expected return or early redemption, then the actual expected return will be less than the annualized expected return.

Since the beginning of this year, market interest rates have fallen, but the net value of many banks' wealth management products has risen against the trend. The annualized rate of return of a number of wealth management products has reached above, and the performance benchmark of wealth management products issued by Bank of Communications, Bank of Nanjing, Bank of Jiangsu, etc. is above. In the investment environment of low interest rates, why is the net value of banks' wealth management products rising against the trend?

How should investors choose the right bank wealth management products? In this issue of "Wealth Connection", Wu Weisi, general manager of CCB Wealth Management Fixed Income Department 1, is invited to interpret it for you. Choreographer:

Tian Tian Producer P>

Almost, the two cannot be compared, because the expected annualized rate of return is generally higher than the comparison benchmark, otherwise who buys.

For example, 10,000 yuan, save for a year, and see which one is more.

The experts are so professional, let me put it in the most popular way.

The benchmark for performance comparison is the guaranteed value given by the ** manager, for example, 6%, that is, he bets that the final income of his product must exceed 6%, which may be higher or 7%, but it will definitely not be less than 6%.

The expected annualized rate of return is an uncertain estimate, as the name suggests, it is the manager who does not pack the ticket to say, for example, it is 6%, it is possible that the final return is 5%, or it may be very high, and it can reach 7%, which is uncertain.

If the final income does not meet the performance benchmark, then the credibility of the manager will definitely be reduced, which may lead to the inability to mix in this industry (my guess).