To make a period of less than a year apply to a full year, usually for purposes of comparison. For instance, a portfolio turnover rate of 36% over a six-month period could be converted to an annualized rate of 72%.
To convert a weekly, monthly, or other periodic amount to its annual equivalent by multiplying the amount by the number of periods in a year. For example, if a mutual fund earns 1% in a month, its annualized return would be 12% (calculated by multiplying the monthly return by 12).
converting to an annual basis, e.g., a mutual fund returning 0.5% a month returns 6% on an annualized (yearly) basis.