the fund performance benchmark refers to the minimum income standard pursued by the fund in its operation, also known as the passing line of fund performance. The fund performance benchmark is an important indicator to measure the relative return of fund performance, and also reflects the investment level of fund managers from the side. The annualized rate of return of the fund = (income/principal)/(investment days /365 days) 1%, and the annualized rate of return refers to the annualized rate of return obtained during the fund duration.

There are two ways to compare the performance of funds. One is global comparison, in which all funds or funds in the same group are ranked together. Second, the fund is compared with the pre-determined benchmark. This pre-determined benchmark is the performance comparison benchmark of the fund. This comparison method measures the fund performance by defining an appropriate 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, 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 rate of return for 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.

In this way, investors can intuitively understand the performance of the fund in the past period of time. Fund operating performance includes fund net income and unrealized valuation appreciation (impairment) income, which is an indicator that can fully reflect the operating results of the fund in a certain period of time. The main indicators reflecting the fund's operating performance include fund dividends, realized benefits, net growth rate and other indicators. Among them, the net growth rate is the most important analysis index, which can best reflect the operating results of the fund. The simplest indicator of net growth rate can be calculated by the following formula: net growth rate = [(net share at the end of the period-net share at the beginning+dividend during the period)/net share at the beginning ]×1%. The net growth rate takes into account the dividends, realized income and unrealized income of the fund, so it is the most effective indicator to reflect the operating results of the fund. If simply examining the net growth rate of a fund itself does not explain any problems, we should usually compare the net growth rate of the fund with the benchmark and the net growth rate of similar funds in order to comprehensively evaluate the investment effect of the fund.