How do I convert daily returns of mutual funds into anual returns?

It would not make much sense to calculate daily returns in order to convert hem to annual returns. This is because though daily returns may appear small, a mere 0.5% when magnified 360 times may appear to be 180%!

In the investing journey, it is best to take a long term view. Look for returns over 1 year, 3 year, 5 year and possibly even 10 year timeframes!