Today, we will talk about what a benchmark is, the various types of benchmarks, and how to use them in investing. A benchmark is a standard against which something is compared, commonly used to measure the performance of securities, mutual funds, exchange-traded funds, portfolios, and other investment instruments. Market benchmarks are important for evaluating the performance of investments and indicating the health of a market. They are indicators of past performance, and there are benchmarks for every type of investment and strategy.
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