Ch.11 · Scheme Performance Disclosure Rules · hard
What is a 'Total Return Index' (TRI) and why does SEBI mandate its use as the benchmark?
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EXPLANATION
Total Return Index includes both price appreciation and dividend income of index constituents (dividends reinvested). Since mutual funds also reinvest dividends, SEBI mandates TRI benchmarks (e.g., Nifty 50 TRI) to enable a fair comparison — earlier Price Return Index benchmarks were easier to beat.
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