1. Different definitions: the benchmark of a fund refers to the index tracked by the fund or other market benchmarks to measure the performance of the fund. Similar funds refer to similar fund products, such as stock funds and bond funds.
2. The dimensions of measurement are different: the benchmark of the fund is used to measure the absolute performance of the fund, that is, whether the fund has obtained excess returns relative to the market benchmark. Similar funds are used to measure the performance of funds in similar funds. For example, similar funds of stock funds are other stock funds.
3. Different reference standards: the fund's benchmark always determines the performance of the fund by comparing with the market index. Usually, people often refer to funds with excellent performance as "outperforming benchmarks". Compare the performance of similar funds with the performance of similar funds to determine the performance of the fund in similar funds.
Although both fund benchmark and similar funds are used to evaluate fund performance, the emphasis is different. Therefore, when investing in funds, it is necessary to choose evaluation criteria according to investment objectives and risk tolerance.