n NISM Certifications
MF MF Foundations
Medium

What is the purpose of a benchmark in the context of mutual fund scheme performance?

Practice question from Mutual Fund Scheme Performance Test — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To guarantee a minimum return to investors.

  2. To provide a standard against which the scheme's performance can be compared.

    Correct answer

  3. C

    To determine the Net Asset Value (NAV) of the scheme.

  4. D

    To calculate the Total Expense Ratio (TER)

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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