Business Standard

Edelweiss MF moves to ‘total return index’ benchmarki­ng


Facing criticism over significan­t Chinese ownership, Paytm founder Edelweiss Asset Management on Monday said it would disclose the performanc­e of its equity mutual fund (MF) schemes against the ‘total return index’ of their respective benchmarks. Total return index factors in dividend income. Currently, most funds are benchmarke­d to price return index, which just captures the price performanc­e of underlying stocks. According to Edelweiss, the total return index is a more accurate measure of performanc­e and a better measure of capturing true alpha — the excess returns. Last month, another asset manager, DSP BlackRock, announced it would disclose the performanc­e of its equity MF schemes with the total return index as the benchmark. “We think this practice will provide an accurate picture of the performanc­e of our funds relative to their benchmarks, both internally and externally,” Radhika Gupta, CEO, Edelweiss Asset Management, said. BS REPORTER

Newspapers in English

Newspapers from India