Ch.2 · Mutual Fund Structure Basics · easy
What is a 'benchmark' in the context of mutual fund performance?
0% of students got this wrong
EXPLANATION
A benchmark is a market index (e.g., Nifty 50, BSE Sensex, Nifty 500) against which the performance of a mutual fund scheme is measured. SEBI requires AMCs to disclose the scheme's benchmark and compare performance against it. Outperforming the benchmark indicates positive fund manager alpha.
Practising Chapter 2 one question at a time?
Try the full chapter — 100 questions, tracked score, weak area breakdown.