Performance Benchmarking And Other Recent Norms For AIFs

Overview

Benchmark simply means a point of reference or a threshold against which things are compared. Things are evaluated in light of such 'benchmark'. One gets to see or hear about such benchmarks in varied aspects of life. For instance, there would be 'benchmarks' for companies – the best performing one or the one with best corporate governance practice, in sports – the best sportsperson of any given discipline, in investments – the best performing mutual fund or the best investment avenue, the best professional and the list goes on and on. To understand in a lighter sense or rather a realistic one, during ones childhood, one is generally compared with the best performing student in the school or in the class – bet it academics, sports or other extra circular activities. These 'benchmarks' come up for discussions when the performance of any particular thing or person is to be assessed.