Investing
Benchmark
The market index a fund compares itself against to show whether it is doing well.
A benchmark is the yardstick a fund is measured against, like the Nifty 50 or Nifty Midcap 150.
If a fund charges high fees to beat its benchmark but consistently trails it, you are paying extra for worse results.
Always judge an active fund by whether it beats its benchmark after fees, not by its raw return.
For example
An active large-cap fund returning 11% looks fine until you notice its Nifty 50 benchmark did 13% for a fraction of the fee.