Mutual fund houses in India with equity funds have started benchmarking their funds with the Total Returns Index (TRI).
Mutual fund houses in India with equity funds have started benchmarking their funds with the Total Returns Index (TRI). Such benchmarking against the TRI provides a correct picture of the total returns generated by the particular mutual fund scheme as compared to the total returns generated by the benchmark index.
So what is TRI all about? TRI is an index that captures the movement in stock prices of companies as also the dividend paid by the companies to their investors. Since the index captures both the price stock movement and dividend distributed, it provides a true picture of the returns generated by the stock for the investors over a given period of time.
In contrast to the TRI, the normal practice of comparing the performance of the mutual fund scheme with the performance of the benchmark index captured only the movement of stock prices over a period of time. This comparison was based on the Price Return Index (PRI), which does not take dividend paid by the company into account. Since the PRI excludes earnings by way of dividend, it does not present a true picture of the total returns generated by the stocks over a period of time, hence PRI benchmarking can be said to be inadequate for comparison of returns. In other words, TRI benchmarking is the way to go for mutual funds in India.
So what is TRI all about? TRI is an index that captures the movement in stock prices of companies as also the dividend paid by the companies to their investors. Since the index captures both the price stock movement and dividend distributed, it provides a true picture of the returns generated by the stock for the investors over a given period of time.
In contrast to the TRI, the normal practice of comparing the performance of the mutual fund scheme with the performance of the benchmark index captured only the movement of stock prices over a period of time. This comparison was based on the Price Return Index (PRI), which does not take dividend paid by the company into account. Since the PRI excludes earnings by way of dividend, it does not present a true picture of the total returns generated by the stocks over a period of time, hence PRI benchmarking can be said to be inadequate for comparison of returns. In other words, TRI benchmarking is the way to go for mutual funds in India.
Invest Rs 1,50,000 and Save Tax up to Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds. Save Tax Get Rich
Top 10 Tax Saver Mutual Funds for 2018
Best 10 ELSS Mutual Funds to Invest in India for 2018
1. DSP BlackRock Tax Saver Fund
2. Tata India Tax Savings Fund
3. Birla Sun Life Tax Relief 96
4. Sundaram Diversified Equity Fund
5. ICICI Prudential Long Term Equity Fund
6. Invesco India Tax Plan
7. Franklin India TaxShield
8. Reliance Tax Saver (ELSS) Fund
9. BNP Paribas Long Term Equity Fund
10. Axis Tax Saver Fund
Invest in Best Performing 2018 Tax Saver Mutual Funds Online
Invest Best Tax Saver Mutual Funds Online
Download Top Tax Saver Mutual Funds Application Forms
For further information contact SaveTaxGetRich on 94 8300 8300
OR
You can write to us at
Invest [at] SaveTaxGetRich [dot] Com
OR
Call us on 94 8300 8300
