Key answer
Compare a fund only to its own legally-stated Total Return Index, over matched periods. A price index leaves out reinvested dividends and gives almost any fund free credit it didn't earn — a proxy quietly changes whether a fund looks good.
Price index vs total-return index
A price index (like "NIFTY 50") tracks only price movement. A Total Return Index (like "NIFTY 50 TRI") also reinvests the dividends the underlying companies pay. Since a fund receives and reinvests those dividends too, comparing the fund to a price index gives it free credit it didn't earn — making almost any fund look like it beat the market.
The legal benchmark
Every fund declares a specific benchmark in its official documents — its legal benchmark — and regulators require performance to be shown against the total-return version. That exact index, on matched periods, is the only fair yardstick.
Why OmniAsset uses the exact TRI
OmniAsset compares each fund only to its own legally-stated TRI benchmark, over matched periods. If the exact TRI series isn't available, the comparison is withheld rather than swapped for a convenient proxy — because a proxy benchmark quietly changes whether a fund looks good or bad. See how this feeds the health check, and why expense ratio only matters relative to this yardstick.
A worked example
Over one year the NIFTY 50 price index rose 11%, while the NIFTY 50 TRI rose 12.5% — the extra 1.5% is reinvested dividends.
A fund that returned 12% looks like a winner against the price index (+1%) but actually lagged the TRI (−0.5%). Judged against the wrong index, a laggard reads as a beat.
How OmniAsset treats this. OmniAsset compares each fund only to its own legally-stated TRI benchmark, on matched periods. If the exact TRI series isn't available, the comparison is withheld — never swapped for a convenient proxy that would change the verdict.
Sources
- SEBI benchmarking circular — requires fund performance to be shown against the Total Return Index
- Fund scheme documents (legal benchmark) — the exact index each fund declares — /methodology/
Common questions
What is a TRI benchmark?
A Total Return Index tracks an index's price and reinvests the dividends its constituents pay. Because a fund does the same, the TRI is the fair yardstick — a plain price index would flatter the fund.
Why not compare to a price index?
A price index omits reinvested dividends, so it understates the market's true return and gives almost any fund undeserved credit. Regulators require the total-return version for that reason.
What if the exact TRI isn't available?
OmniAsset withholds the comparison rather than substitute a proxy index — a stand-in benchmark would quietly change whether the fund looks good or bad.
Compare every fund to its real total-return benchmark.
Get OmniAsset on Google Play Next: How to compare funds