Is it time to rethink benchmarks?

Assessing their usefulness and reliability

clock • 3 min read

A fund's benchmark is likely one of the first pieces of information – alongside charges, manager and performance – that an investor will look at before considering buying into a fund.

After all, it is a good indicator of how they can expect the investment vehicle to perform, and provides a means of checking whether the fund is 'doing what it says on the tin' over time. But how much bearing should investors really place on a fund's performance relative to a benchmark, and should the managers themselves be taking a closer look at their benchmarks of choice? FCA shines light on fund benchmark and fee disclosures For investors wishing to know - at the most basic level - the fund's aim and whether it is achieving that aim, benchmark indices are arguably more useful i...

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