Scroll Top

search-icon
    drop-arrow

    Benchmark

    Introduction

    Benchmark is a standard used for comparison. In financial markets, the indexes are the benchmarks against which the performance of individual securities is compared. Thus, a benchmark is a standard against which one can measure the performance of a security, mutual fund, or investment manager.

    Understanding Benchmark

    When evaluating the performance of any investment, it is imperative to compare it against an appropriate benchmark. Generally, the stock and bond indexes are used for this purpose. The BSE (Bombay Stock Exchange) index and CNX Nifty are the broad benchmark indices referred to in India.

    The benchmark indices help in measuring broad market performance. Benchmark indices may be created across different asset classes and sectors, such as bond index and the auto sector index.

    Factors to Consider

    1. In the equity market, the large-cap, mid-cap, and small-cap stocks are represented by different indices.

    2. Benchmark indices help investors in aligning their investment decisions with the index. For example, a risk-averse investor may choose the large-cap index.

    3. An investor can also strategize the portfolio based on index stocks.

    4. Identifying and setting a benchmark can be an important aspect of investing for individual investors.

    5. In addition to traditional benchmarks representing broad market characteristics, such as large-cap index, mid-cap index, small-cap index, growth, and value, investors can also find indexes based on fundamental characteristics, sectors, dividends, market trends, and much more.

    6. When seeking investment benchmarks, an investor should also consider risk. An investor's benchmark should reflect the amount of risk he or she is willing to take.

    Index

    Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.

    Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.

    CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.

    Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.

    Cleartax is a product by Defmacro Software Pvt. Ltd.

    Company PolicyTerms of use

    ISO

    ISO 27001

    Data Center

    SSL

    SSL Certified Site

    128-bit encryption