Mutual fund houses in India with equity funds have started benchmarking their funds with the Total Returns Index (TRI). Such benchmarking against the TRI provides a correct picture of the total returns generated by the particular mutual fund scheme as compared to the total returns generated by the benchmark index.
So what is TRI all about? TRI is an index that captures the movement in stock prices of companies as also the dividend paid by the companies to their investors. Since the index captures both the price stock movement and dividend distributed, it provides a true picture of the returns generated by the stock for the investors over a given period of time.
