What benchmarks mean for asset classes, investors and fund managers

Benchmarks in the investment world should be unambiguous, investable, measurable, relevant, reflective of investment opinion, transparent, stable, and owned by managers. The Association of Portfolio Managers in India recently required PMS firms to choose from pre-fixed benchmarks, causing initial backlash. However, the association later allowed firms to show past performance with both the old and new benchmarks. Benchmarks should align with an investor's objective and continuous debate and evolu...