Ch.10 · Benchmarks and Performance Evaluation · easy

What is 'peer group comparison' in mutual fund performance analysis?

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EXPLANATION

Peer group comparison measures how a fund performs relative to other funds in the same SEBI category. A large cap fund should be compared with other large cap funds, not mid cap or hybrid funds. Third-party platforms (Value Research, Morningstar) rank funds within categories. Category rank provides context — a fund with 12% return is excellent if peers earned 8%, but poor if peers earned 15%.

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