1. The benchmark of fund performance is an important criterion for evaluating the performance of fund companies.

2. Performance benchmarks can be used to reflect and compare the investment objectives, scope and strategies of funds. For example, if the benchmark of performance comparison is "95% growth rate of Shanghai and Shenzhen 300 Index+5% yield of interbank deposits", it means that the goal is to strive to make the yield outperform the index.

3. Secondly, the performance benchmark is a good tool to rationally measure the performance of the fund. When the market is good, by comparing the net growth rate with the benchmark rate of return in the same period, we can see whether the fund performance outperforms the benchmark and obtains excess rate of return; When the market falls, as long as the decline of the net growth rate is less than the decline of the benchmark return rate of its performance in the same period, it can be explained that the fund's anti-risk investment operation is effective, and it only needs to continue to hold it until the market rebounds, thus avoiding irrational chasing up and down.

The benchmark of fund performance is to define a suitable benchmark combination for the fund, and the performance of the fund can be measured by comparing the rate of return of the fund and the rate of return of the performance benchmark.

There are two ways to compare the performance of funds.

The first is a global comparison, in which all funds or funds in the same group are ranked together.

Second, compare the fund with a predetermined benchmark. This predetermined benchmark is the performance comparison benchmark of the Fund.

This comparison method measures the fund performance by defining a suitable benchmark portfolio for the evaluated fund and comparing the difference between the fund return rate and the benchmark portfolio return rate. The benchmark portfolio is an investable and 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.

According to the new fund information disclosure rules, 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 benchmark return rate of the same period, and require the fund to disclose the changes in the net value since the fund contract came into effect in a graphic way and compare them with the changes in the benchmark performance.