At the 4th edition of the annual Mint Mutual Fund Conclave, total return index (TRI) as a performance benchmark was discussed at length. Three asset managers benchmark the performance of their equity schemes against TRI of the underlying benchmark now. Should others follow?
At the conclave, G. Mahalingam, whole time member, Securities and Exchange Board of India (Sebi), acknowledged better transparency in the move by fund houses who have adopted TRI as a benchmark. However, some of the panellists also spoke about the practical impediments in making this change.