How-to
benchmark
MF disclosure
Key facts Mandate SEBI 27 October 2021 circular (effective 1 December 2021) Tier 1 Broad-market benchmark per SEBI category Tier 2 Narrower / style benchmark, AMC-chosen Purpose Better performance comparison
Procedure Read SEBI's category-wise Tier 1 benchmark Large-cap: Nifty 100 TRI. Flexi-cap: Nifty 500 TRI. Mid-cap: Nifty Midcap 150 TRI. Small-cap: Nifty Smallcap 250 TRI. Liquid: CRISIL Liquid Index. Etc. Verify scheme factsheet displays Tier 1 Post 1 Dec 2021: factsheet must show Tier 1 benchmark return alongside scheme. Identify Tier 2 if disclosed Some AMCs disclose Tier 2 (e.g., Nifty 50 TRI for a large-cap fund focused on top-50). Optional secondary. Compare scheme to Tier 1 Primary measurement: Tier 1 alpha. Multi-period (3/5/7/10 year). Compare to Tier 2 if available Tier 2 reflects manager’s narrower focus. Beating Tier 2 = aligning with style mandate. Tier 1 / Tier 2 benchmark framework (SEBI 2021) standardised MF benchmarking. Comparison fairness improved significantly post-implementation.
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Prerequisites Scheme factsheet with benchmark disclosure. Step-by-step procedure See the procedure infobox above for the five steps.
Category-wise Tier 1 benchmarks Category Tier 1 Large-cap Nifty 100 TRI / S&P BSE 100 TRI Flexi-cap Nifty 500 TRI Multi-cap Nifty 500 Multicap 50:25:25 TRI Mid-cap Nifty Midcap 150 TRI Small-cap Nifty Smallcap 250 TRI Large & Mid Nifty Large Midcap 250 TRI ELSS Nifty 500 TRI Liquid CRISIL Liquid Index Short Duration CRISIL Short Duration Aggressive Hybrid CRISIL Hybrid 35+65 - Aggressive Balanced Advantage CRISIL Hybrid 50+50 - Moderate
What can go wrong Pre-2021 factsheets : Used older / inconsistent benchmarks.Different categorisation per AMC : Use SEBI’s canonical map.See also External references References SEBI Circular on Two-Tiered Benchmark Structure for MF Schemes, 27 October 2021. SEBI Master Circular for Mutual Funds. AMFI Best Practice Guidelines. Published by webnotes.in webnotes.in covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Revisions are tracked against the SEBI and NPCI rule changes referenced in the article.
Last reviewed 19 May 2026 Conflicts of interest WebNotes is independent. No relationship with any broker, registrar or bank named in this article. Disclaimer. This article is published for educational and informational purposes only. It is not investment advice, a solicitation to buy or sell any security, or a recommendation to subscribe to any specific Initial Public Offering. For personalised recommendations please consult a SEBI-registered investment adviser who has reviewed your financial situation, goals and risk tolerance.
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