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Edelweiss Mutual Fund to disclose performance of its schemes against Total Returns Index of benchmarks

Edelweiss-TRI-vs-PRI

Edelweiss Asset Management Limited (Ltd), a subsidiary of Edelweiss Financial Services Limited, today announced that it would be disclosing performance of its equity mutual fund schemes against the Total Return Index (TRI) of their respective benchmarks.

At Edelweiss Group, customer centricity has been paramount to us and as part of our core guiding principles, we are defined by the experience our customers have with us. We strive to make it outstanding at all times.

The mutual fund industry generally showcases its performance against a benchmark. While the performance of the mutual fund scheme is a function of dividend as well as the capital gains made on investments, returns on the Price Return Index of these benchmarks are considered without any dividend income. Total Return Index, when measuring performance, reflects the actual return on an investment which includes capital gains and dividends paid by the underlying companies over a given evaluation period.

Hence, Total Return Index is viewed as a strong measure of an investment’s overall performance and an apt measure to reflect the true alpha created by mutual funds over their benchmarks.

Ms. Radhika Gupta, CEO, Edelweiss Asset Management says, “Going forward, all equity schemes of Edelweiss Mutual Fund will be benchmarked to the Total Return Index rather than Price Return Index. We think this practice will provide an accurate picture of the performance of our funds relative to their benchmarks, both internally and externally. It is important for us to take this step today, because in our journey to build a quality asset management business, it is important to set high standards for ourselves – both in investment management and investor communication.”

Benchmarking to Total Return Indices is a practice recommended by the Global Investment Performance Standards (GIPS) prescribed by the CFA institute, and is adopted by leading global asset managers.

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