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Market Intelligence › Basic Terminologies
Comparing your returns with an index like Nifty.
Published by The Retail Trader · JUL 31, 2026 · Risk Management
Benchmark Comparison — Comparing your returns with an index like Nifty. Returns less than the index mean that there was no benefit from the hard work.
This term comes under Risk Management, in the "NUMBERS OF PERFORMANCE" section. And those numbers which show what was actually achieved in a year's hard work:
Other terms in this group — understanding them together is more useful:
• Absolute Return
• CAGR
• XIRR
• Alpha
• Risk-Adjusted Return
• Sharpe Ratio
• Maximum Consecutive Losses
• Largest Single Loss
• Average Holding Period
• Turnover Ratio
To read the entire group and all its examples at one place, see the journal "RISK MANAGEMENT: DICTIONARY OF AVOIDANCE" - this term has been taken from there.
This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.