Benchmark
A benchmark is a standard or reference point used to measure the performance of an investment. Investors typically use benchmarks like stock market indexes (e.g., the NIFTY50) to compare the returns of their own portfolios or individual securities. Benchmarks help assess whether an investment is outperforming, underperforming, or matching the broader market. By providing a basis for comparison, benchmarks offer insights into an investment's relative performance.
