For example, if the market index rises by 65,438+00% in one month and the investor's portfolio rises by 65,438+05% in the same period, then the investor has outperformed the market. Here, "outperforming the broader market" usually refers to relative returns, that is, investors pay attention to the difference between their investment returns and the overall market returns, rather than absolute returns.
It is not an easy task to beat the market, which requires investors to have strong stock selection ability, market analysis ability and risk management ability. The goal of many professional investors and fund managers is to outperform the market to prove their investment ability. For ordinary investors, through rational allocation of assets, diversification of investment risks and attention to market dynamics, they also have the opportunity to achieve the goal of outperforming the broader market.