Do you know what is the benchmark of the following mutual fund schemes?
- Axis Long Term Equity Fund
- HDFC Prudence Fund
- Quantum Long Term Equity Fund
- DSP BR Micro Cap Fund
- ICICI Pru Focused Bluechip Equity Fund
- Sundaram Select Mid cap Fund
If you are wondering what a benchmark is, it is an index against which the fund compares its performance. For example, a mutual fund would say that it is going to benchmark against the BSE Sensex, the bellwether index of 30 most liquid stocks. With the fund management skills, it would do better than the Sensex; means it will deliver better returns than the Sensex.
Every mutual fund scheme chooses its own benchmark.