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Fund performance benchmark
The benchmark of fund performance can be regarded as the "passing line" of the fund's long-term performance and the lowest goal that the fund should pursue in its management and operation.

In the process of fund investment, investors tend to pay more attention to the absolute return and relative ranking of funds, while ignoring the passing line of funds-performance comparison benchmark, which reflects the relative return of funds and the management ability of fund managers.

Extended data:

The role of performance benchmarks

1, an important indicator to judge the management level.

In the process of fund investment, regardless of absolute return and ranking, in a certain period of time, the fund's return rate is better than the performance comparison benchmark, indicating that the product management operation is qualified; If the fund's rate of return is lower than the performance benchmark, it is unqualified.

2. Setting of "Basic Fraction Line"

The passing scores of different exams are set differently. For example, the score 100 is generally a passing line of 60 points; If it is 150, it is 90 points. The difference is that when taking a driver's license test, it is generally 100, and the passing score is 90. Similarly, the performance benchmarks of different types of funds are relatively different.

The benchmark of performance comparison between bond funds and money funds is usually linked to bond index or deposit interest rate. Take the current bond funds as an example. The performance comparison benchmarks include China Bond Comprehensive Bond Index, China Securities Credit Bond Index and China Securities Total Bond Index, and some are comprehensive performance comparison benchmarks, such as the yield of China Bond Comprehensive Wealth (Gross Value) Index ×90% 1 year fixed deposit rate (after tax) × 10%.

3. Reveal the investment style of the fund.

Funds that invest in small and medium-sized stocks usually use the small and medium-sized index as one of the components of performance comparison benchmark. For example, for a SSE ETF linked fund, the corresponding performance benchmark is "SSE mid-cap index yield ×95% deposit interest rate (after tax) × 5%"; Funds that invest in large-cap stocks are mostly based on the Shanghai and Shenzhen 300.

4. Reflect the management ability of the team.

Usually, it is not easy to judge the management ability of the team simply by whether the fund outperforms the market. Performance benchmark can more accurately reflect the relationship between the fund and the corresponding system risks and objectively evaluate the ability of the fund management team.

5. Query channels

In addition to special inquiry tools, performance comparison benchmark is one of the disclosure information of publicly raised funds. Investors can see what the performance benchmark of the fund is in the prospectus and fund contract. In the quarterly, semi-annual and annual reports of the fund, we can see the income of the performance benchmark and the growth rate of the fund's net value, and there is an intuitive comparison chart to show whether the fund outperforms the performance benchmark in the same period.