Where: T stands for Tereno performance index, Rp stands for the average rate of return of the fund during the investment investigation period, Rf stands for the average risk-free interest rate during the investigation period, and βp stands for the systematic risk of the fund.

Tereno performance index means the excess return of risky assets per unit system (exceeding the risk-free interest rate Rf). The bigger the Tereno performance index, the better the fund performance; On the contrary, the worse the fund performance.

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If fund risk factors need to be considered, there are comprehensive evaluation indicators such as Zhan Sen index, Treno index and Sharp index. Excellent fund products can pursue performance beyond the broader market through active investment management. This shows that fund investment needs not only income, but also excess income beyond the market average.

Quantifying and implementing this investment concept into fund products is to pursue the maximization of Zhan Sen index (or alpha value) through active management, thus creating the maximization of excess return of fund investment. Only by beating the market benchmark portfolio to obtain excess returns is the best interpretation of the concept of expert financial management. Only by investing in such fund products can investors truly achieve the purpose of entrusting financial management and obtaining the maximum income.

Baidu encyclopedia -Treeno index