Performance benchmark is a relatively objective thing, usually embodied in funds or wealth management products. Each product is based on a different performance benchmark. For example, some products directly use the Shanghai and Shenzhen 300 Index as a benchmark for performance comparison; Some products have independent calculation formulas, as shown in the figure:

Therefore, generally speaking, performance comparison benchmark is to compare products with specific indicators or specific calculation formulas. As far as the Fund is concerned:

If the actual income of the fund is greater than the performance benchmark, it means that the investment return rate of this fund is high. The fund's return on investment can not be separated from the fund manager's stock selection ability, so it shows that the fund manager's level is very high. If the return on investment of a fund is higher than the performance benchmark for many years in a row, then it is a good fund.

If the actual income of the fund is lower than the performance benchmark, it shows that the return on investment of the fund is low, which reflects that the fund manager's ability of stock selection and risk control is poor. If the fund's income is lower than the performance benchmark for many years, it is not recommended to buy such funds.