Benchmark in mutual funds – is it important for your investment decissions?
If you are about to buy a rice bag, there is no need to test the entire bag, right? If you can test a small sample of rice with your hand, that is more than enough to know the quality of the rice that you are buying. Similarly, while investing in mutual funds, if you compare any group of schemes with its relevant benchmark, that is enough for you to take your investment decision. What is a benchmark in a mutual fund? In the realm of investment, the selection of the right instruments can significantly influence the outcome of an …