Edelweiss MF moves to 'total returns index' benchmarking

The move by these to fund houses may force other players also to follow suit

Asset Management on Monday said it will 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 capture 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 that it would disclose the performance of its equity MF schemes with the total return index (TRI) as the