Performance comparison benchmark is a term in fund investment: by counting the income of each fund under the influence of policies and market environment over the years, we can infer the income of this kind of fund next year or next quarter, and set a fund income passing line: funds with income higher than the passing line are excellent and worth investing; Funds below the passing line are funds with low returns and failing grades, which are not worth investing in.
Performance comparison is to compare the income of such funds over the years; The benchmark is the theoretical income of this kind of fund next year or next quarter.
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In the process of fund investment, regardless of absolute return and ranking, in a certain period of time, the fund's return rate is better than the performance comparison benchmark, indicating that the product management operation is qualified; If the fund's rate of return is lower than the performance benchmark, it is unqualified. For example, a bond fund A, the benchmark of performance comparison is China Bond Composite Index. By the end of June, 20 17, the fund's net growth rate in the last three years was 23.7%, and the benchmark return rate of performance in the same period was 14. 1 1%, which exceeded the benchmark by 9.59 percentage points, indicating that the fund manager's performance in the last three years was qualified.
Usually, it is not easy to judge the management ability of the team simply by whether the fund outperforms the market. Performance benchmark can more accurately reflect the relationship between the fund and the corresponding system risks and objectively evaluate the ability of the fund management team.
What do you mean by the performance benchmark that is always mentioned? ? China Securities Network