DSP BlackRock Mutual Fund to disclose performance of funds against Total Return Index

DSP BlackRock Asset Management Company announced on Wednesday that it would disclose the performance of its active equity mutual funds with the Total Return Index (TRI) as the benchmark. The TRI is a benchmark that captures dividend-adjusted returns, apart from capital gains.

With very few exceptions, the mutual fund industry generally showcases the performance of its schemes against a benchmark, typically an index. The returns on the benchmarks are considered without any dividend income.

The total return reveals the overall performance of an investment. It is considered apt to reflect the true alpha created by mutual funds. Total return reflects the actual rate of return of an investment or a pool of investments over a period. It includes interest, capital gains, dividends and distributions realized over a period.


“Our move to disclose returns against TRI will help in giving the right picture of the real alpha generated by active fund management. The alpha that is shown currently may look overstated as dividends are not added in benchmark returns,” says Kalpen Parekh, President, DSP BlackRock Investment Managers. Parekh added that, “we want our investors to have a true picture of the alpha generated and also to have the right expectations from their investments.”

Anup Maheshwari, EVP and CIO - Equities, DSP BlackRock Investment Managers, said, “Total return determines an investment’s true growth over time. It is important to evaluate any fund’s performance against its total return benchmark to get the right perspective on the fund’s relative performance."