5 Questions
What is the purpose of defining a benchmark for mutual fund schemes?
To assess the performance of the scheme against a comparable standard
Who typically constructs most benchmarks for mutual fund schemes?
Stock exchanges, credit rating agencies, securities research houses, or financial publications
What are the requirements for a credible benchmark for mutual fund schemes?
It should be in line with the investment objective and strategy of the scheme
Why is the choice of benchmark simplest for an index fund?
The investment objective clearly indicates the index that the scheme would track
Who benefits from an appropriate performance benchmark for mutual fund schemes?
Unit-holders and potential investors
Test your knowledge of mutual fund scheme performance, including benchmarks, quantitative measures of fund manager performance, and sources to track mutual fund performance.
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