Funds
What is benchmark?
The index a fund measures itself against.
Explained in more detail
A fund that returned 14% sounds good until you learn its benchmark returned 17%. The benchmark is what you could have earned passively, so it is the only fair comparison for an actively managed fund.
An example
For instanceA large cap fund is usually measured against the Nifty 50 or Nifty 100.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time benchmark appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.