A benchmark is a standard against which the performance of mutual funds is compared. The benchmark is based on the objective of your fund. The scheme which gives more returns than the benchmark is better. The benchmark returns are based on two factors – the risk appetite of the investor and the investment tenure. Low risk investors should focus on safe investments: Amit Kukreja, Founder, AmitKukreja.com and Tanwir Alam, CEO, Fincart.

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