If the product is calculated on a daily basis, then the actual rate of return is calculated as: annualized rate of return ÷365 days × investment days.
Expected return is not equal to actual income
The wealth management products of each bank will have an expectation of their income, but investors should understand that the expected return does not equal its actual income. For example, some products have an expected rate of return of 12%, but they use an 18-month yield, and if they convert to an annual rate of return, it is 7.99%.
A class description of a commercial bank's product indicates that if the “net value of the open-end product unit” is greater than the “net value of the product unit when the performance compensation was last received”, then the performance compensation = the share of the open-day wealth management product × (open day product) Unit net value - the net unit value of the product when the performance was last collected) × 20%. From these words, it can be simply understood that if the net value of the product is higher than 1.07, 20% of the excess will not be owned by the investor, but will be owned by the bank! Therefore, investors must look at the product specifications while purchasing bank wealth management products, and do not be blinded by the so-called "highest income."