A performance benchmark of 4.3% means an annual rate of return of 4.3%. For example, if an investor invests in a fund and its benchmark rate of return is 4.3%, then the income he can get in one year is = 100000x4.3%=4300 yuan. The actual rate of return is high or low, and the specific rate of return depends on the actual rate of return after the maturity date.

At the same time, due to the change of investment strategy, the replacement of funds and the change of tracking index, fund managers may also adjust their performance under realistic conditions; Performance benchmarks can also help investors judge the investment style and other characteristics of funds. By observing the reference index selected by the Fund, investors can get a preliminary understanding of the investment style of the Fund. Once this reference changes, it means that the investment style of this fund has changed, which will have an impact on investors' income.

What is the difference between performance benchmark and annualized rate of return?

1, different in nature: performance comparison benchmark is used to measure product performance, annualized rate of return is used to measure product income, and annualized rate of return is the expected income converted into one year;

2. Different returns: In the specific operation of the fund, the performance benchmark is usually the minimum target set. For products with lower risk level, it is more likely to reach or exceed the expected return.