What Is a Benchmark?

A benchmark (karşılaştırma ölçütü) is a reference indicator or basket of indicators used to evaluate a fund's return. It can be an index, an interest rate or inflation. A percentage on its own — say "40% return" — does not by itself tell you whether it is "good" or "bad"; that judgment only becomes meaningful once you compare the return against a reference point, that is, a benchmark. Which benchmark a fund is tied to is disclosed in its information documents.

Why a raw return is not enough on its own

Return is a number, but whether that number is large or small is a relative question. Over the same period, what did the broad market, comparable funds or inflation do? A benchmark answers exactly this "relative to what" question:

• If the fund's return is above the benchmark, the fund outperformed the benchmark over that period.
• If it is below the benchmark, it underperformed.

This distinction is the difference between absolute return and relative return: absolute return is the fund's own percentage, while relative return is where that percentage stands against the benchmark. The same 40% return is a strong result if the benchmark is 30% and a weak one if the benchmark is 60% — the number is identical, but its interpretation flips.

This is an evaluation method, not a prediction or a recommendation. Having beaten the benchmark in the past does not mean it will do so in the future; this page does not say that any fund should be bought. Making the comparison over standard, matching periods such as annual return or year-to-date (YTD) matters so you compare like with like; comparing periods of different lengths is misleading.

Types of benchmark

A benchmark is chosen to reflect the asset class the fund invests in. The main types are:

Benchmark type	Example	Which fund it suits
Index	An equity or debt-instrument index	Funds investing in the assets the index tracks
Interest rate	A short-term reference rate	Money market and debt-instrument funds
Inflation	A consumer price index	Funds aiming to preserve purchasing power
Blended basket	A weighted mix of several indicators	Variable / mixed portfolios

For example, an equity index is a more meaningful reference point for a stock fund, while an interest-rate gauge is for a money market fund. Choosing the wrong benchmark — say, comparing a bond fund with an equity index — produces a misleading picture. In some funds the benchmark is not a single indicator but a basket in which several indicators are combined at set weights; this better reflects a mixed portfolio's structure.

The difference between a benchmark and a "hurdle rate"

These two concepts are often confused, but their functions differ:

• A comparison benchmark is an evaluation tool: it is used to interpret a fund's performance and does not by itself create a fee.
• A hurdle rate (eşik değer) is, in some funds — mostly hedge (serbest) funds — the minimum return level used to compute a performance fee. Only when the fund returns above this hurdle can a performance fee accrue on the excess portion.

So a benchmark answers "how did the fund do," while a hurdle rate answers "did a performance fee arise." A fund's hurdle rate, the performance-fee rate and the calculation basis are defined in the prospectus and information document and disclosed to the public via TEFAS and KAP.

"Kıyaslama" on Fon.org.tr: the benchmark is purchasing power

The "Kıyaslama" (comparison) overlay on this site's price charts uses, by deliberate design, purchasing-power and FX benchmarks rather than an asset index (such as an equity index or gold). The comparison bases are:

• Inflation — CPI (TÜFE) and, as an alternative, ENAG: the question "did the fund beat the cost of living."
• Currency — USD and EUR conversion: the question "was value preserved against hard currency."

The reason is that the product's frame is real return — that is, purchasing power. The aim here is to let you see a fund not by whether it beat a stock index, but by whether it preserved your money's buying power. You can place a fund's nominal and real paths side by side under these benchmarks on the /fon-karsilastirma page, and see step by step how a given amount would have changed in real terms between two dates on the /fon-getiri-hesaplama. These pages give no recommendation; they simply show the return against the benchmark you choose and leave the interpretation to you.