Bogey

AAA

DEFINITION of 'Bogey'

A buzzword that refers to a benchmark used to evaluate a fund's performance. The benchmark is an index that reflects the investment scope of the funds investment. Comparing a fund's performance to a benchmark index gives investors an idea of how well the fund is doing compared to the market.

Also known referred to as "bogy".

INVESTOPEDIA EXPLAINS 'Bogey'

For example, the performance of a small-cap fund may be compared to the Russell 2000, which is a benchmark for small-cap funds. The Russell 2000 would be referred to as the small-caps bogey, when talking of its over- or underperformance to the fund.

One of the most common benchmarks is the S&P 500 index.

RELATED TERMS
  1. Money Manager

    A business or bank responsible for managing the securities portfolio ...
  2. Benchmark

    A standard against which the performance of a security, mutual ...
  3. Fund Manager

    The person(s) resposible for implementing a fund's investing ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Portfolio Manager

    The person or persons responsible for investing a mutual, exchange-traded ...
  6. Portfolio

    A grouping of financial assets such as stocks, bonds and cash ...
Related Articles
  1. 6 Asset Allocation Strategies That Work
    Options & Futures

    6 Asset Allocation Strategies That Work

  2. 5 Things To Know About Asset Allocation
    Investing Basics

    5 Things To Know About Asset Allocation

  3. 4 Strategies For Managing A Portfolio ...
    Mutual Funds & ETFs

    4 Strategies For Managing A Portfolio ...

  4. Benchmark Your Returns With Indexes
    Mutual Funds & ETFs

    Benchmark Your Returns With Indexes

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center