{"id":796,"date":"2026-08-14T12:34:29","date_gmt":"2026-08-14T07:04:29","guid":{"rendered":"https:\/\/prodigypro.co.in\/blog\/?p=796"},"modified":"2026-08-14T12:34:31","modified_gmt":"2026-08-14T07:04:31","slug":"what-is-a-benchmark-in-mutual-funds","status":"publish","type":"post","link":"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/","title":{"rendered":"How Do You Know If Your Mutual Fund Is Actually Doing Well? Understanding Investment Benchmarks"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/08\/investment-benchmark-1-1024x683.png\" alt=\"Benchmark in Mutual Funds\" class=\"wp-image-802\" srcset=\"https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/08\/investment-benchmark-1-1024x683.png 1024w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/08\/investment-benchmark-1-300x200.png 300w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/08\/investment-benchmark-1-768x512.png 768w, https:\/\/prodigypro.co.in\/blog\/wp-content\/uploads\/2026\/08\/investment-benchmark-1.png 1536w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Overview\" >Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Why_%E2%80%9CGood_Returns%E2%80%9D_Mean_Nothing_Without_Context\" >Why &#8220;Good Returns&#8221; Mean Nothing Without Context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#What_Is_a_Benchmark_in_Simple_Terms\" >What Is a Benchmark, in Simple Terms?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Not_All_Benchmarks_Are_Created_Equal\" >Not All Benchmarks Are Created Equal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#A_Real_Example_Why_Benchmark_Selection_Changes_Everything\" >A Real Example: Why Benchmark Selection Changes Everything<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#How_to_Choose_the_Right_Benchmark_for_Your_Investment\" >How to Choose the Right Benchmark for Your Investment<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#1_Match_the_Fund_Category\" >1. Match the Fund Category<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#2_Match_the_Risk_Level\" >2. Match the Risk Level<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#3_Match_the_Market_and_Geography\" >3. Match the Market and Geography<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Watch_Out_Some_Funds_are_Benchmarked_Against_%E2%80%9CEasy%E2%80%9D_Indices\" >Watch Out: Some Funds are Benchmarked Against &#8220;Easy&#8221; Indices<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Example\" >Example<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Key_Takeaways\" >Key Takeaways<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Frequently_Asked_Questions\" >Frequently Asked Questions<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#What_is_a_benchmark_in_mutual_funds\" >What is a benchmark in mutual funds?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Why_cant_I_compare_all_mutual_funds_to_the_Nifty_50\" >Why can&#8217;t I compare all mutual funds to the Nifty 50?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#How_do_I_know_if_my_mutual_fund_is_actually_outperforming_the_market\" >How do I know if my mutual fund is actually outperforming the market?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/prodigypro.co.in\/blog\/what-is-a-benchmark-in-mutual-funds\/#Do_debt_funds_have_benchmarks_too\" >Do debt funds have benchmarks too?<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview\"><\/span><strong>Overview<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A <strong>benchmark<\/strong> in mutual funds is a market index such as the Nifty 50, Nifty Midcap 150, or a CRISIL bond index used as a reference point to measure how well a mutual fund or investment has performed. A fund is considered to have done well only if it has <strong>beaten or matched a benchmark from the same asset class, market cap, and risk category<\/strong>. A 12% return can be excellent or mediocre  it entirely depends on what you compare it to.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_%E2%80%9CGood_Returns%E2%80%9D_Mean_Nothing_Without_Context\"><\/span><strong>Why &#8220;Good Returns&#8221; Mean Nothing Without Context<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Picture this: your mutual fund statement shows a 10% return this year. That feels like a win until you find out the broader market climbed 15% in the same period. Suddenly, that 10% doesn&#8217;t look quite so impressive.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is the single most common mistake retail investors make in India: judging fund performance purely on the number itself, without asking, &#8220;10% compared to what?&#8221;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Numbers alone don&#8217;t tell you much. A return only becomes meaningful when you compare it with a <strong>relevant standard<\/strong>, called a <strong>benchmark<\/strong>. Knowing how to use a <a href=\"https:\/\/prodigypro.co.in\/best-mutual-funds\">benchmark in mutual funds<\/a> correctly is an important investing skill that is often overlooked.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_a_Benchmark_in_Simple_Terms\"><\/span><strong>What Is a Benchmark, in Simple Terms?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Think about a school exam. A student scoring 82 out of 100 sounds good&nbsp; until you learn the class average was 93. The score itself didn&#8217;t change, but your interpretation of it did completely.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mutual funds work similarly. A <strong>fund benchmark<\/strong> is a market index used to compare a fund\u2019s performance. It represents the type of market the fund invests in, such as <strong>large-cap stocks, mid-cap stocks, government bonds, gold, or international equities<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Fund houses choose a benchmark that matches the fund\u2019s investment strategy. As an investor, you should check whether your fund is <strong>actually performing better than its benchmark<\/strong>, rather than looking at its returns in isolation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In India, <strong>SEBI requires every mutual fund scheme to disclose a benchmark<\/strong> in its documents and factsheets. This gives investors a <strong>standard reference point to compare and judge a fund\u2019s performance<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Not_All_Benchmarks_Are_Created_Equal\"><\/span><strong>Not All Benchmarks Are Created Equal<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s where many investors go wrong: they compare their fund to <em>any<\/em> popular index, rather than the <em>right<\/em> one.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You wouldn&#8217;t compare a small-cap fund&#8217;s returns to the Sensex. You wouldn&#8217;t measure a debt fund against the Nifty 50. That&#8217;s the equivalent of comparing a school student&#8217;s arithmetic score to an engineering graduate&#8217;s calculus exam  the two simply aren&#8217;t playing on the same field.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a comparison to mean anything, the <strong>benchmark index for mutual funds<\/strong> must mirror your investment across four dimensions:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Same asset class<\/strong> \u2013 equity compared with equity, debt with debt, gold with gold<\/li>\n\n\n\n<li><strong>Same market-cap segment<\/strong> \u2013 large-cap, mid-cap, or small-cap<\/li>\n\n\n\n<li><strong>Same risk profile<\/strong> \u2013 aggressive funds need aggressive benchmarks<\/li>\n\n\n\n<li><strong>Same geography<\/strong> \u2013 domestic investments compared with domestic indices, international with international<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Get any of these wrong, and the comparison stops being useful \u2014 it becomes misleading.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Real_Example_Why_Benchmark_Selection_Changes_Everything\"><\/span><strong>A Real Example: Why Benchmark Selection Changes Everything<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Suppose your mid-cap mutual fund delivered an 11% return this year. Sounds decent\u00a0 until you discover the <strong>Nifty Midcap 150<\/strong> &#8211; the appropriate <a href=\"https:\/\/prodigypro.co.in\/best-mutual-funds\/best-mid-cap\">benchmark for mid-cap funds<\/a> &#8211; rose 17% in the same period. Your fund actually underperformed its category.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But if you compare that same <strong>11% return with the Nifty 50<\/strong>, which rose only 10%, the fund may look like it <strong>\u201cbeat the market.\u201d<\/strong> While that may be technically true, it can be misleading because <strong>large-cap and mid-cap funds have different levels of risk and growth potential<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is exactly why <strong>choosing the appropriate performance benchmark<\/strong> matters \u2014 it has to be fair to the fund&#8217;s actual strategy, and fair to your expectations as an investor.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Choose_the_Right_Benchmark_for_Your_Investment\"><\/span><strong>How to Choose the Right Benchmark for Your Investment<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Match_the_Fund_Category\"><\/span><strong>1. Match the Fund Category<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Fund Type<\/strong><\/td><td><strong>Appropriate Benchmark<\/strong><\/td><\/tr><tr><td>Large-cap equity fund<\/td><td>Nifty 50 \/ S&amp;P BSE 100<\/td><\/tr><tr><td>Mid-cap equity fund<\/td><td>Nifty Midcap 150<\/td><\/tr><tr><td>Small-cap equity fund<\/td><td>Nifty Smallcap 250<\/td><\/tr><tr><td>Debt fund<\/td><td>CRISIL Bond \/ Debt indices<\/td><\/tr><tr><td>International\/US equity fund<\/td><td>S&amp;P 500 \/ MSCI World<\/td><\/tr><tr><td>Gold fund<\/td><td>Domestic or global gold price indices<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Match_the_Risk_Level\"><\/span><strong>2. Match the Risk Level<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A high-risk sectoral or thematic fund shouldn&#8217;t be judged against a conservative hybrid or balanced fund&#8217;s benchmark. Even if it &#8220;looks&#8221; better on paper, the comparison ignores the extra risk the fund is taking to generate those returns. A fair benchmark reflects similar volatility, not just similar returns.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Match_the_Market_and_Geography\"><\/span><strong>3. Match the Market and Geography<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re invested in US equities, compare returns to a US-based index  not an Indian one. If you hold gold, use a relevant domestic or global gold benchmark. Comparing local investments with international benchmarks or vice versa is one of the most common ways investors misjudge performance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Watch_Out_Some_Funds_are_Benchmarked_Against_%E2%80%9CEasy%E2%80%9D_Indices\"><\/span><strong>Watch Out: Some Funds are Benchmarked Against &#8220;Easy&#8221; Indices<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here&#8217;s an uncomfortable truth: fund houses sometimes select a <strong>weaker benchmark<\/strong> on purpose to make performance look better than it really is.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, imagine a <strong>hybrid fund<\/strong> that invests in both equity and debt. If it is compared with a conservative <strong><a href=\"https:\/\/www.quantstart.com\/articles\/the-6040-benchmark-portfolio\/\" rel=\"nofollow noopener\" target=\"_blank\">60:40 benchmark<\/a><\/strong>, the fund may look like it is outperforming.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But if the fund consists of equity, it will take more risk than the benchmark, and the comparison won&#8217;t be completely fair; the fund has a higher chance of earning impeccable returns.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So, as an investor, <strong>don&#8217;t just look at the benchmark mentioned in the factsheet<\/strong>. Ask whether that benchmark really matches the fund&#8217;s actual mix of investments and risk level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That helps you tell the difference between <strong>genuine outperformance and returns that simply look good on paper<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example\"><\/span>Example<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Imagine two friends at the gym. One spends 45 minutes lifting weights; the other does an hour of yoga. You wouldn&#8217;t judge them by &#8220;who sweated more&#8221;; they have different goals, different intensities, and different metrics for success.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/prodigypro.co.in\/mutual-funds\">Mutual funds are no different<\/a>. Each fund follows its own strategy and risk mandate. A fair evaluation compares it only to funds and indices playing the same game.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span><strong>Key Takeaways<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A <strong>benchmark<\/strong> turns a raw return number into meaningful information.<\/li>\n\n\n\n<li>Always match the benchmark to the fund&#8217;s <strong>asset class, market cap, risk level, and geography<\/strong>.<\/li>\n\n\n\n<li>A fund that &#8220;beats the market&#8221; on paper may still be underperforming its true peer group.<\/li>\n\n\n\n<li>Be alert to funds benchmarked against artificially weak indices.<\/li>\n\n\n\n<li>Before trusting any &#8220;X% returns&#8221; claim, always ask: <strong>compared to what?<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>This article is for educational purposes only and does not constitute investment advice. Mutual fund investments are subject to market risks. Please read the scheme-related documents carefully before investing.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Ready to track your investments the smart way?<\/strong> <a href=\"https:\/\/app.prodigypro.co.in\/\">Download the Prodigy Pro app<\/a> to compare your mutual funds against the right benchmarks and invest with clarity.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions\"><\/span><strong>Frequently Asked Questions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_benchmark_in_mutual_funds\"><\/span><strong>What is a benchmark in mutual funds?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">A benchmark is a market index such as the Nifty 50 or Nifty Midcap 150 \u2014 that a mutual fund uses as a reference point to measure its performance. It helps investors judge whether the fund manager has added real value compared to simply tracking the broader market.<br><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_cant_I_compare_all_mutual_funds_to_the_Nifty_50\"><\/span><strong>Why can&#8217;t I compare all mutual funds to the Nifty 50?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">The Nifty 50 tracks large-cap stocks only. Comparing a mid-cap, small-cap, debt, or international fund to it gives a misleading picture, since each category carries different risk and return characteristics. Always compare a fund to a benchmark from its own category.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_I_know_if_my_mutual_fund_is_actually_outperforming_the_market\"><\/span><strong>How do I know if my mutual fund is actually outperforming the market?<\/strong><br><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Check your fund&#8217;s factsheet for its stated benchmark and compare your fund&#8217;s returns to that specific index over the same time period (1-year, 3-year, and 5-year rolling returns are commonly used). A fund is truly outperforming only if it consistently beats its own category benchmark, not just a popular index.<br><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Do_debt_funds_have_benchmarks_too\"><\/span><strong>Do debt funds have benchmarks too?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">Yes. Debt mutual funds are typically benchmarked against CRISIL bond and debt indices rather than equity indices like the Nifty 50 or Sensex, since debt funds carry very different risk and return profiles.<br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview A benchmark in mutual funds is a market index such as the Nifty 50, Nifty Midcap 150, or a CRISIL bond index used as a reference..<\/p>\n","protected":false},"author":1,"featured_media":801,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[92,283,975,191,286],"class_list":["post-796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-financial-planning","tag-investment-strategy","tag-mutual-fund-analysis","tag-mutual-funds","tag-return-on-investment"],"_links":{"self":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/comments?post=796"}],"version-history":[{"count":2,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/796\/revisions"}],"predecessor-version":[{"id":803,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/posts\/796\/revisions\/803"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media\/801"}],"wp:attachment":[{"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/media?parent=796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/categories?post=796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prodigypro.co.in\/blog\/wp-json\/wp\/v2\/tags?post=796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}