InvestorQ : What is benchmarking and how do I benchmark my investments?
Angel dcosta made post

What is benchmarking and how do I benchmark my investments?

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Niti Shenoi answered.
3 years ago
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At the end of the day, the long term is nothing but a compilation of a series of short term performances. Hence it is very important that your portfolio is constantly either at par or better than the benchmark indices. If you are at par with the indices for too long, there is something wrong with your portfolio. An index fund could have done this job as effectively, then why the risk of equities? If you portfolio is consistently underperforming the index do a rigorous review of the laggards and understand why the stock price is not reflecting your fundamental beliefs. Occasional underperformance is understandable in a long term portfolio. But if your portfolio is a consistent laggard, then the alarm bells must start ringing.

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