DEFINITION of 'Seven Day Yield'

Interest earned on a money market mutual fund without the compounding interest. This yield is the dividend and interest earned by the fund, and paid out during the seven-day period, minus any management fees incurred during those seven days. Also referred to as the seven-day annualized return.


BREAKING DOWN 'Seven Day Yield'

For example, let's say one share of the fund was $18 in the beginning of a seven-day period, and $18.05 at the end of that same seven-day period. Fees for that week were 3 cents.


Seven-Day Annualized Yield
=((18.05 - 18.00 - 0.03)/18.00) x 365/7
=0.0579 or 5.79%

RELATED TERMS
  1. SEC Yield

    A standard yield calculation developed by the Securities and ...
  2. Mutual Fund Yield

    Dividend payments divided by the value of a mutual fund’s shares. ...
  3. Periodic Interest Rate

    The interest rate charged on a loan or realized on an investment ...
  4. Compound Interest

    Compound Interest is interest calculated on the initial principal ...
  5. Compound Return

    The rate of return, usually expressed as a percentage, that represents ...
  6. Effective Annual Interest Rate

    Effective Annual Interest Rate is an investment's annual rate ...
Related Articles
  1. Investing

    2016's Most Promising Money Market Funds

    Learn information on some of the most promising money market mutual funds for investors to consider adding to their portfolio in 2016.
  2. Financial Advisor

    Fidelity Money Market Funds Overview

    Learn key information about the wide variety of money market mutual funds that Fidelity Investments offers investors seeking minimal risk and guaranteed income.
  3. Investing

    Trading Mutual Funds For Beginners

    Learn about the basics of trading and investing in mutual funds. Understand how the fees charged by mutual funds can impact the performance of an investment.
  4. Financial Advisor

    How Mutual Fund Companies Make Money

    Read about the many different kinds of fees and sales charges mutual fund companies can use to generate revenue from those who invest in their shares.
  5. Investing

    A Guide to Mutual Funds Trading Rules

    Make sure to review this guide on the dos and don'ts of mutual fund trading before you invest, including how trades are executed and which fees to look out for.
  6. Investing

    Learn Simple And Compound Interest

    Interest is defined as the cost of borrowing money, and depending on how it is calculated, can be classified as simple interest or compound interest.
  7. Investing

    Looking to Buy Mutual Funds Online? Here Is How

    Learn how to buy mutual funds online; discover which websites offer mutual fund trading services, how to choose a fund and typical fees.
  8. Investing

    A Guide For Picking Long Term Mutual Funds

    Learn about considerations for investors when buying shares in a mutual fund for a long-term investment, including fees, type of management and portfolio goals.
  9. Investing

    Mutual Funds Are Awesome - Except When They're Not

    This investment is very popular, but that doesn't mean it comes without risk.
RELATED FAQS
  1. How do mutual funds compound interest?

    Learn how mutual funds can grow wealth over time through the magic of compound interest by reinvesting dividends back into ... Read Answer >>
  2. What is the difference between yields and interest rates?

    The main difference between yields and interest rates is that each term refers to different financial instruments. Yield ... Read Answer >>
  3. Do mutual fund trading costs hurt your bottom line?

    Find out how a mutual fund's expense ratio could be eating into your bottom line, what costs are included and an example ... Read Answer >>
Hot Definitions
  1. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that decreased and eventually eliminated tariffs to encourage economic activity ...
  2. Benchmark

    A standard against which the performance of a security, mutual fund or investment manager can be measured.
  3. Mobile Wallet

    Mobile wallet is a virtual wallet that stores payment card information on a mobile device.
  4. Leverage

    1. The use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment. ...
  5. Trumponomics

    Trumponomics is a term for the economic policies of President Donald Trump.
  6. Universal Health Care Coverage

    An organized healthcare system that provides healthcare benefits to all persons in a specified region. Many countries, such ...
Trading Center