TRI (Total Return Index): why benchmark returns look higher

A Total Return Index (TRI) tracks not just the price movement of its stocks but also the dividends they pay, assumed reinvested. A plain price index ignores those dividends.

Why it matters for benchmarking

Since 2018, SEBI requires mutual funds to benchmark against the TRI version of their index — a fairer comparison, because the fund itself also earns and reinvests dividends. So "Nifty 50 TRI" always reads a little higher than a plain "Nifty 50" price index.

The practical gap

Dividends add roughly 1–1.5% a year to Indian equity indices. So if you compare a fund to a free price-index chart, the fund looks better than it really is — because the index is understated by that dividend yield. Always compare against the TRI.

Note: many free data sources (and Dhanik's benchmark line) show the price-return index, so treat the benchmark as a close proxy that runs slightly below the official TRI.

→ Compare a fund vs its benchmark on the fund page's "vs benchmark" NAV chart.