Net worth wealth management is a portfolio-based financial management method, and its return calculation needs to take into account the changes in the net value of the portfolio. This article will introduce in detail the income calculation method of net-worth wealth management.
1.The basic concepts and characteristics of net-worth wealth management.
Net worth wealth management is a financial management method that invests in a variety of financial products, including **, bonds, **, etc.
The income of net-worth wealth management is the change in the net value of the portfolio, including the income brought by assets, as well as the income of non-** changes such as dividends and interest.
The calculation of the income of net-worth wealth management should not only consider the yield of a single financial product, but also comprehensively consider the income weight of different financial products.
2.The rationale for the calculation of returns.
The return calculation of net worth wealth management is based on the change in the net value of the portfolio.
The net value of a portfolio is the weighted average of the market capitalization of individual assets, and changes in market value cause fluctuations in net worth.
3.The specific method of calculating the return.
Earnings calculation method 1: daily yield method.
This method calculates the daily return by calculating the rate of change in equity over two adjacent trading days.
The specific calculation formula: (net value of the day - net value of the previous trading day) net value of the previous trading day.
Yield calculation method 2: cumulative yield method.
This method calculates the return over a specified period of time by calculating the rate of change in equity over a period of time.
The specific calculation formula: (Closing Net Value - Opening Net Value) Opening Net Value.
Yield calculation method 3: annualized rate of return method.
This approach assesses the long-term profitability of a portfolio by calculating the cumulative return on an annualized basis.
The specific calculation formula: (1 + cumulative rate of return) (365 cumulative days)-1.
4.Illustrated by examples.
Let's assume that the portfolio has an initial net value of 100, a net value of 120 at the end of the first year, and a net value of 150 at the end of the second year.
According to the cumulative return method, the cumulative return of this portfolio is 50% (150-100) 100.
According to the annualized rate of return method, the annualized return of this portfolio is 1907%。（1+0.5）^(365/730)-1。
Conclusion: The return calculation of net-worth wealth management is based on the change in the net value of the portfolio, including the daily rate of return method, the cumulative rate of return method and the annualized rate of return method. Investors can choose the appropriate return calculation method according to their own needs and investment horizon to evaluate the profitability of the portfolio.
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