Benchmark

	Definition of 'Benchmark' A standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market-segment stock and bond indexes are used for this purpose.
	Investopedia explains 'Benchmark' When evaluating the performance of any investment, it's important to compare it against an appropriate benchmark. In the financial field, there are dozens of indexes that analysts use to gauge the performance of any given investment including the S&P 500, the Dow Jones Industrial Average, the Russell 2000 Index and even competitor fund.

Related Definitions

Active Investment Management Misses The Mark

Active investment management offers little advantage in the secondary capital markets.
Benchmark Your Returns With Indexes

If your portfolio is always falling short, you may not be making an apples-to-apples comparison.
Benchmark To Show Winning Returns

You can't win if you don't keep score. Read on to learn how to measure your returns.
Analyzing Mutual Funds For Maximum Return

Using a few simple metrics will help you pick the right fund for your portfolio.
Is Your Investment Manager Skilled Or Lucky?

Being familiar with composite presentations will help you better assess the quality of an investment manager's performance.
Measuring And Managing Investment Risk

Risk is inseparable from return. Learn more about these measures and how to balance them.
6 Employment Perks And How To Get Them

Find out how to get more than money from your employer.
Make Your Portfolio Safer With Risky Investments

A high-risk security can reduce risk overall. Find out how it works.
Create Your Own U.S. Equity Portfolio

Find out how to structure your portfolio so you can maximize returns.
Your Mutual Fund: It's Riskier Than You Think

Fund managers often take on more risk than they should, putting business ahead of fund holders' interests.

Why Americans Think Bush Is To Blame For The Economy	The Complete Guide To Calculating Your Net Worth		Top Investment Trends For 2013	5 Viable Career Options In 2013
	How Do Internet Browsers Make Money?	Commodities Of The Future	Trending Stocks And The January Effect