When comparing the quality of funds, investors are often used to intuitive figures-absolute return, that is, the net growth rate from the beginning to the end, which is a real change in money. But there is also a concept of relative return. For example, compared with the expected annualized rate of return of the Shanghai Composite Index, investors often simply compare partial stock funds with the broader market, which is what we usually call "whether they can outperform the broader market", which is the embodiment of the strength of fund managers. Relative return will also compare the fund's rate of return with the domestic inflation rate to see if the fund can resist the "erosion" of personal assets caused by inflation and achieve the minimum value preservation effect.

There are two ways to compare the performance of funds. One is global comparison, in which all funds or funds in the same group are ranked together. Second, the fund is compared with the pre-determined benchmark. This pre-determined benchmark is the performance comparison benchmark of the fund. This comparison method measures the performance of the fund by defining an appropriate benchmark portfolio and comparing the difference between the expected return of the fund and the expected return of the benchmark portfolio. The benchmark portfolio is an investable, unmanaged portfolio with the same style as the fund. Performance comparison benchmark is an important criterion for investors to evaluate the performance of fund management companies.

since 22, the regulatory authorities have required open-end funds to publish their performance benchmarks at the time of issuance, and funds with different risks and expected returns track different benchmarks, which is conducive to the stability of fund style and investors' reasonable evaluation of fund performance. With the comparison between performance benchmark and fund net value becoming the content of statutory information disclosure, investors will no longer simply use the simple and unreasonable method of "whether to outperform the market" to judge the quality of funds, and it will also help fund managers to abide by fund contracts and maintain a stable investment style.

The new fund information disclosure rules stipulate that in the annual report, semi-annual report and quarterly report of the fund, the fund manager must disclose the comparison between the net growth rate and the expected rate of return of the performance benchmark in the same period, and require the fund to disclose the changes in the net value since the fund contract came into effect by means of diagrams and compare them with the changes in the performance benchmark. In this way, investors can intuitively understand the performance of the fund in the past period of time.