Bogey
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". |
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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. |
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