{"id":78090,"date":"2026-10-28T16:28:43","date_gmt":"2026-10-28T10:58:43","guid":{"rendered":"https:\/\/www.5paisa.com\/finschool\/?post_type=markets&#038;p=78090"},"modified":"2026-10-28T16:29:31","modified_gmt":"2026-10-28T10:59:31","slug":"mutual-fund-benchmarking","status":"publish","type":"markets","link":"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/mutual-fund-benchmarking\/","title":{"rendered":"Mutual Fund Benchmarking"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"78090\" class=\"elementor elementor-78090\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4be72f6 elementor-section-full_width tab_container elementor-section-height-default elementor-section-height-default\" data-id=\"4be72f6\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d209c0c\" data-id=\"d209c0c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-896d102 elementor-section-full_width elementor-section-height-default elementor-section-height-default\" data-id=\"896d102\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-wide\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-c9133f2 chapters_list\" data-id=\"c9133f2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aa101bd elementor-widget elementor-widget-shortcode\" data-id=\"aa101bd\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-shortcode\">\t<script>\n\t\tjQuery(document).ready(function(){\n\t\t\tjQuery(\"#post_chapters a[href*='\" + location.pathname + \"']\")\n\t\t\t\t.addClass(\"current\")\n\t\t\t\t.attr(\"aria-current\", \"page\");\n\t\t})\n\t<\/script>\n\t<div class=\"desktop_chapters\"><div id=\"post_chapters\"><div class=\"post_chapters-heading\">Chapters<\/div><ul><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/background-and-orientation\/\">Background and Orientation<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/personal-finance-math\/\">Personal Finance Math<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/money-today-vs-money-tommorrow\/\">Money Today vs Money Tommorrow<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/the-retirement-part-1\/\">The Retirement -Part 1<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/assumptions-in-retirement-planning\/\">Assumptions in Retirement Planning<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/understanding-stock-funds\/\">The Role of Mutual Funds in Modern Finance<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/concept-of-fund-and-nav\/\">Concept of Fund and NAV<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/understanding-the-performance-of-your-fund\/\">Mutual Fund Factsheet<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/the-equity-scheme\/\"> The Equity Scheme<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/equity-scheme-part-2\/\">Equity Scheme Part 2<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/debt-funds-part-1\/\">Debt Funds Part 1<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/monitoring-your-portfolio\/\">Debt Funds Part 2<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/debt-funds-part-3\/\">Debt Funds Part 3<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/debt-funds-part-4\/\">Debt Funds Part 4<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/investing-in-bonds\/\">Investing in Bonds<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/index-funds\/\">Index Funds<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/arbitrage-funds\/\">Arbitrage Funds<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/measuring-mutual-fund-returns\/\">Measuring Mutual Fund Returns<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/rolling-returns\/\">Rolling Returns<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/mutual-fund-expense-ratio\/\">Mutual Fund Expense Ratio<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/mutual-fund-benchmarking\/\">Mutual Fund Benchmarking<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/mutual-fund-beta-sd-and-sharpe-ratio\/\">Mutual Fund Beta SD and Sharpe Ratio<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/sortino-and-capture-ratios\/\">Sortino and Capture Ratios<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/how-to-analyse-equity-mutual-funds\/\">How to Analyse Equity Mutual Funds<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/how-to-analyse-debt-mutual-fund\/\">How to Analyse Debt Mutual Fund<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/mutual-fund-portfolio\/\">Mutual Fund Portfolio<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/smart-beta-funds\/\">Smart Beta Funds<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/asset-allocation\/\">Asset Allocation<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/exchange-traded-funds\/\">Exchange Traded Funds<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/basics-of-macro-economics\/\">Basics of Macro Economics<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/personal-finance-part-1\/\">Personal Finance-Part 1<\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/personal-finance-review-part-2\/\">Personal Finance Review Part 2 <\/a><\/li><li><i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i>&nbsp;&nbsp;&nbsp;<a href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/know-your-funds\/\">Know Your Funds<\/a><\/li><\/ul><\/div><\/div><div class=\"chapters_toggle\"><a href=\"#\" id=\"open_chapters\" aria-label=\"View chapters\"><span>View Chapters<\/span>&nbsp;&nbsp;&nbsp;<i class=\"fa fa-chevron-right\" aria-hidden=\"true\"><\/i><\/a><a href=\"#\" id=\"close_chapters\" style=\"display:none;\" 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    <span class=\"eael-tab-title title-after-icon\" >Slides<\/span>                            \n                                                    <\/li>\n                                            <li id=\"videos\" class=\" eael-tab-item-trigger eael-tab-nav-item\" aria-selected=\"false\" data-tab=\"3\" role=\"tab\" tabindex=\"-1\" aria-controls=\"videos-tab\" aria-expanded=\"false\">\n                            \n                                                                <i class=\"far fa-eye\"><\/i>                                                            \n                                                            <span class=\"eael-tab-title title-after-icon\" >Videos<\/span>                            \n                                                    <\/li>\n                    \n                                  <\/ul>\n            <\/div>\n            \n            <div class=\"eael-tabs-content\">\n\t\t        \n                    <div id=\"study-tab\" class=\"clearfix eael-tab-content-item active-default\" data-title-link=\"study-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;'>\n<div id='text_slider' class='owl-carousel sa_owl_theme owl-pagination-true' data-slider-id='text_slider' style='visibility: visible;visibility:visible;'>\n<div id='text_slider_slide01' class='sa_hover_container' data-hash='TER-Savings-The-Silent-Wealth-Multiplier' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2><strong><b>21.1\u00a0 TER Savings \u2013 The Silent Wealth Multiplier<\/b><\/strong><\/h2>\r\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-77985 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings.png\" alt=\"TER Savings\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/TER-Savings-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>The Total Expense Ratio (TER)\u00a0is often overlooked because it appears small\u2014just 1% or 1.5% annually. Yet, this seemingly minor percentage has a profound impact on long-term wealth creation. TER represents the annual cost of fund management, covering salaries of fund managers, research analysts, custodians, compliance, and distributor commissions. Importantly, it is deducted daily from the NAV, making it invisible to investors.<\/p>\r\n<p>Unlike brokerage fees, which are explicit, TER is embedded in the NAV. Every day, a fraction of your investment is shaved off. Over years, this deduction compounds into a significant difference. Investors often underestimate this because they focus on short-term returns, but over decades, TER savings can be the difference between financial independence and falling short of goals.<\/p>\r\n<p>Consider an example: You invest \u20b920,000 per month in a hybrid fund such as SBI Equity Hybrid Fund for 15 years\u00a0<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Regular Plan TER: <\/b><\/strong>9%<\/li>\r\n<li><b><\/b><strong><b>Direct Plan TER: <\/b><\/strong>2%<\/li>\r\n<li><b><\/b><strong><b>Gross return assumption: <\/b><\/strong>12% CAGR<\/li>\r\n<\/ul>\r\n<p>At the end of 15 years:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Total invested: <\/b><\/strong>\u20b936 lakh<\/li>\r\n<li><b><\/b><strong><b>Direct Plan corpus:<\/b><\/strong> About \u20b986 lakh (XIRR \u2248 10.8%)<\/li>\r\n<li><b><\/b><strong><b>Regular Plan corpus:<\/b><\/strong> About \u20b981 lakh (XIRR \u2248 10.1%)<\/li>\r\n<\/ul>\r\n<p>That\u2019s a difference of <strong><b>about \u20b95 lakh<\/b><\/strong>, purely due to TER savings.<\/p>\r\n<p><strong><b>Table: Direct vs Regular SIP Performance (15 Years)<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Plan Type<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>TER<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Final Corpus<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>XIRR<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Direct Plan<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>1.2%<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 \u20b986 lakh<\/p>\r\n<\/td>\r\n<td>\r\n<p>10.8%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Regular Plan<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>1.9%<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 \u20b981 lakh<\/p>\r\n<\/td>\r\n<td>\r\n<p>10.1%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>This example highlights how TER savings are not trivial\u2014they can fund a child\u2019s education, a retirement corpus, or even a down payment on a house. The longer the horizon, the larger the gap.<\/p>\r\n<p>Another subtlety is that TER is deducted regardless of whether the fund gains or loses value. Even in a negative year, the expense ratio applies. This makes TER one of the most consistent drags on performance. Passive funds like index funds and ETFs usually have lower TERs because they don\u2019t require active management. Actively managed funds justify higher TERs by promising superior returns, but whether they deliver consistently is the real question.<\/p>\r\n<p>The lesson: TER is not just a percentage\u2014it is a silent wealth multiplier when minimized. Choosing Direct Plans is one of the simplest yet most effective ways to maximize long-term wealth creation.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide02' class='sa_hover_container' data-hash='Benchmarking-and-TRI-Measuring-True-Performance' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2><strong><b>21.2 \u2013 <\/b><\/strong><strong><b>Benchmarking and TRI \u2013 Measuring True Performance<\/b><\/strong><\/h2>\r\n<p><img decoding=\"async\" class=\"aligncenter wp-image-77986 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI.png\" alt=\"Benchmarking and TRI\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Benchmarking-and-TRI-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>Benchmarking is the yardstick against which mutual fund performance is judged. Without a benchmark, you cannot tell whether a fund manager is truly adding value. It is like comparing athletes in a race\u2014without knowing the competitor\u2019s timing, you cannot judge who is better.<\/p>\r\n<p>For example, suppose Kotak Large Cap Fund (formerly Kotak Bluechip Fund)\u00a0delivers 12% CAGR over 5 years, while its benchmark, the Nifty 100 TRI, delivers 10.5%. The fund has outperformed by 1.5 percentage points, which is its excess return (often loosely called its alpha). If it had delivered 9%, it would be considered underperforming.<\/p>\r\n<p>The critical point is the use of TRI (Total Return Index). Unlike a simple price index, TRI includes dividends. This matters because dividends contribute significantly to long-term returns. Ignoring dividends understates the benchmark\u2019s return and makes fund managers look better than they are.<\/p>\r\n<p><strong><b>Table: Nifty 50 vs Nifty 50 TRI (approx., Jan 2000\u2013Dec 2020)<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Index Type<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Absolute Return<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>CAGR<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Nifty 50 (Price only)<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 845%<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 11.3%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Nifty 50 TRI (Price + Dividends)<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 1,100%<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 12.6%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>This difference is not cosmetic\u2014it reflects the real experience of investors. If you hold stocks, you earn both capital gains and dividends. Ignoring dividends understates the returns investors actually earn. Over long periods, dividends have typically added roughly 1\u20131.5 percentage points a year to Nifty 50 returns.<\/p>\r\n<p>For investors, the takeaway is clear: always evaluate fund performance against TRI benchmarks, not just price indices. It sets a fairer, more realistic measure of whether a fund manager is truly adding value.<\/p>\r\n<p>Another implication is that beating TRI is harder than beating a price-only index. Many funds that looked strong against price indices suddenly appeared weaker when SEBI made TRI benchmarking mandatory for mutual funds from 1 February 2018. This shift forced fund managers to be more disciplined and transparent.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide03' class='sa_hover_container' data-hash='Weights-Matter-Why-Index-Composition-Drives-Returns' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2 style=\"text-align: left\"><strong>21.3. <\/strong><strong><b>Weights Matter \u2013 Why Index Composition Drives Returns<\/b><\/strong><\/h2>\r\n<p><img decoding=\"async\" class=\"aligncenter wp-image-77987 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter.png\" alt=\"Why Weights Matter\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Weights-Matter-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>A common misconception is that broader indices (like Nifty 500) are harder to beat than narrower ones (like Nifty 50). In reality, what matters is <strong><b>weights<\/b><\/strong>, not the number of stocks.<\/p>\r\n<p>Consider two indices:<\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Nifty 50 TRI: <\/b><\/strong>Top 50 large-cap stocks.<\/li>\r\n<li><b><\/b><strong><b>Nifty 500 TRI: <\/b><\/strong>Includes Nifty 50 plus 450 more stocks.<\/li>\r\n<\/ul>\r\n<p>But here\u2019s the catch: in Nifty 500, the <strong><b>largest companies carry a disproportionate share of the weight<\/b><\/strong>. As of mid\u20112026, the top 10 stocks made up about 30% of the index and the top 50 roughly 60%, so the remaining 450 stocks together carried only about 40%. This means the Nifty 500\u2019s performance often tracks the Nifty 50 closely, although the two can diverge meaningfully when mid- and small-caps strongly outperform or underperform large-caps.<\/p>\r\n<p><strong><b>Table: Weight Distribution in Nifty 500 (approx., mid\u20112026)<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Segment<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Weight %<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Top 10 stocks<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 30%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Top 25 stocks<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 45%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Top 50 stocks<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 60%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Remaining 450 stocks<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u2248 40%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>For example, if Reliance, HDFC Bank, Infosys, and ICICI Bank rally, both Nifty 50 and Nifty 500 will rise similarly, regardless of what smaller companies do.<\/p>\r\n<p>This teaches investors two things:<\/p>\r\n<ol>\r\n<li>Don\u2019t obsess over whether your fund benchmarks against Nifty 50 or Nifty 500\u2014the difference is usually modest over long periods, though it can be significant over shorter stretches.<\/li>\r\n<li>Focus instead on <strong><b>realistic return expectations<\/b><\/strong>. If you invest in large-cap funds, expect large-cap type returns, not small-cap style gains.<\/li>\r\n<\/ol>\r\n<p>Another implication is that diversification in indices is often overstated. While Nifty 500 sounds broader, in practice, it is heavily influenced by the same large-cap names. This means that fund managers benchmarked against Nifty 500 are not necessarily facing a tougher challenge than those benchmarked against Nifty 50.<\/p>\r\n<p>The broader lesson is that index construction is not just about the number of constituents\u2014it is about how much weight each stock carries. A handful of large companies often drive much of the returns. Investors should therefore pay attention to index weights when analyzing benchmarks.<\/p>\r\n<h4 style=\"text-align: left\"><strong><b>Key Insights<\/b><\/strong><\/h4>\r\n<ul>\r\n<li><b><\/b><strong><b>TER savings <\/b><\/strong>from Direct Plans compound into significant wealth over time.<\/li>\r\n<li><b><\/b><strong><b>Benchmarking <\/b><\/strong>ensures fair comparison of fund performance, and TRI is the correct benchmark since it includes dividends.<\/li>\r\n<li><b><\/b><strong><b>Weights in indices <\/b><\/strong>matter more than the number of stocks\u2014top constituents drive a large share of the returns.<\/li>\r\n<li>Investors should set <strong><b>realistic expectations <\/b><\/strong>aligned with their chosen fund category rather than chasing benchmarks blindly.<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#text_slider').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 400,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 400,\n\t\t\tfluidSpeed : 400,\n\t\t\tautoplaySpeed : 400,\n\t\t\tnavSpeed : 400,\n\t\t\tdotsSpeed : 400,\n\t\t\tdotsEach : 1,\n\t\t\tloop : false,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : true,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#text_slider').css('visibility', 'visible');\n\t\tvar owl_goto = jQuery('#text_slider');\n\t\tjQuery('.text_slider_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 0);\n\t\t});\n\t\tjQuery('.text_slider_goto2').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 1);\n\t\t});\n\t\tjQuery('.text_slider_goto3').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 2);\n\t\t});\n\t\tvar resize_77912 = jQuery('.owl-carousel');\n\t\tresize_77912.on('initialized.owl.carousel', function(e) {\n\t\t\tif (typeof(Event) === 'function') {\n\t\t\t\twindow.dispatchEvent(new Event('resize'));\n\t\t\t} else {\n\t\t\t\tvar evt = window.document.createEvent('UIEvents');\n\t\t\t\tevt.initUIEvent('resize', true, false, window, 0);\n\t\t\t\twindow.dispatchEvent(evt);\n\t\t\t}\n\t\t});\n\t});\n<\/script>\n<\/p><p>\u00a0<\/p>                    <\/div>\n\t\t        \n                    <div id=\"slides-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"slides-tab\">\n\t\t\t\t        <p><div class='white' style='background:rgb(255, 255, 255); border:solid 0px rgb(255, 255, 255); border-radius:0px; padding:0px 0px 0px 1px;'>\n<div id='text_slider' class='owl-carousel sa_owl_theme owl-pagination-true' data-slider-id='text_slider' style='visibility: visible;visibility:visible;'>\n<div id='text_slider_slide01' class='sa_hover_container' data-hash='Why-talk-about-bonds-now?' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2 style=\"text-align: left\"><strong>15.1 <\/strong><strong><b>Why talk about bonds now?<\/b><\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-77926 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now.png\" alt=\"Why Talk About Bonds Now\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Why-Talk-About-Bonds-Now-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>We have just finished exploring debt mutual funds, which are essentially baskets of bonds managed by professionals. Before moving on to index funds, it makes sense to pause and understand bonds themselves. After all, debt funds are nothing but a collection of bonds, and if fund managers can buy them directly, so can you. Today, investors don\u2019t need to rely only on mutual funds, there are stock exchanges, SEBI\u2011registered Online Bond Platform Providers (OBPPs) and, for government securities, RBI Retail Direct, all of which allow individuals to purchase bonds directly, much like buying shares. Understanding bonds at this stage helps you see the mechanics behind debt funds and gives you the option to invest without an intermediary.<\/p>\r\n<p>Debt mutual funds are essentially collections of bonds. By learning bonds directly, you understand what fund managers are doing behind the scenes.<\/p>\r\n<p><strong><b>Example:<\/b><\/strong><\/p>\r\n<ul>\r\n<li>A debt fund like HDFC Corporate Bond Fund invests in PSU bonds such as Power Finance Corporation (PFC).<\/li>\r\n<li>As an individual, you can also buy listed PFC bonds directly on NSE\/BSE through your broker, or through a SEBI\u2011registered online bond platform.<\/li>\r\n<\/ul>\r\n<p>This means you can bypass the AMC if you want more control, though you\u2019ll lose professional management.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide02' class='sa_hover_container' data-hash=' Looking-at-bonds-before-investing' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2><strong><b>15.2 <\/b><\/strong><strong><b>Looking at bonds before investing<\/b><\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-77927 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing.png\" alt=\"Looking at Funds Before Investing\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Looking-at-Funds-Before-Investing-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>Imagine you\u2019re browsing the stock exchange website and come across bonds issued by a government-backed company, say Power Finance Corporation (PFC). Each bond issue has a unique identification number called an ISIN, much like a fingerprint. Clicking on a bond reveals details such as whether it is tax-free, its credit rating, issue date, maturity date, coupon rate, and face value.<\/p>\r\n<p>For example, suppose a PFC bond carries a tax-free tag. This means the interest you earn annually is exempt from income tax, making it highly attractive for investors in higher tax brackets. Note that no new tax\u2011free bonds have been issued since 2015\u201316, so today they can be bought only in the secondary market on NSE\/BSE. However, if you sell the bond before maturity at a profit, that gain is taxable as capital gains. For listed bonds held for more than 12 months, long\u2011term capital gains are currently taxed at 12.5% without indexation; gains on bonds held for 12 months or less are taxed at your income\u2011tax slab rate. Next, you notice the <strong><b>credit rating<\/b><\/strong>\u2014say AAA from CRISIL. This rating signals that the issuer is extremely reliable in repaying its debt. Since PFC is a government-owned company (a Maharatna PSU under the Ministry of Power), so the risk of default is considered minimal, although its bonds are not explicitly guaranteed by the government.<\/p>\r\n<p>Other details matter too. If the bond is marked as secured, it means the issuer has pledged assets against the borrowing, similar to how banks secure car loans against the vehicle. This reduces risk further. You\u2019ll also see the issue date and maturity date\u2014perhaps issued in 2015 and maturing in 2030, making it a 15 year instrument. Finally, the coupon rate\u00a0tells you how much interest you\u2019ll earn annually based on the bond\u2019s face value. If the coupon is 7% and the face value is \u20b91,000, you\u2019ll receive \u20b970 per bond each year until maturity.<\/p>\r\n<p><strong><b>Looking at Bonds Before Investing<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Detail<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Meaning<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Example<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>ISIN<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Unique identifier for each bond issue.<\/p>\r\n<\/td>\r\n<td>\r\n<p>PFC bond ISINs begin with \u2018INE134E\u2019, PFC\u2019s issuer code.<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Tax-Free Tag<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Interest exempt from income tax.<\/p>\r\n<\/td>\r\n<td>\r\n<p>NHAI Tax-Free Bonds (2015\u201316 issue).<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Credit Rating<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Reliability of issuer.<\/p>\r\n<\/td>\r\n<td>\r\n<p>AAA rating for PFC bonds.<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Secured\/Unsecured<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Whether assets are pledged.<\/p>\r\n<\/td>\r\n<td>\r\n<p>REC secured bonds backed by receivables.<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Issue &amp; Maturity Date<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Tenure of the bond.<\/p>\r\n<\/td>\r\n<td>\r\n<p>Issued 2015, maturing 2030 (15 years).<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Coupon Rate<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Annual interest on face value.<\/p>\r\n<\/td>\r\n<td>\r\n<p>7% coupon \u2192 \u20b970 per \u20b91,000 bond.<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><strong><b>Example:<\/b><\/strong>\u00a0If you buy a PFC Tax-Free Bond (October 2015 issue, 15-year series, 7.52% retail coupon, AAA-rated), you\u2019ll receive tax-free interest every year until it matures in 2030. (The 10-year series of the same issue, with a 7.36% retail coupon, matured in 2025.)<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide03' class='sa_hover_container' data-hash='Yield-to-Maturity' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2 style=\"text-align: left\"><strong>15.3.<\/strong><strong><b>Yield to Maturity (YTM)<\/b><\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-77928 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity.png\" alt=\"Yield to Maturity\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Yield-to-Maturity-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>While the coupon looks straightforward, the real measure of return is the Yield to Maturity (YTM). Think of it like buying a rental property. Suppose you buy a shop for \u20b950 lakh and rent it out for \u20b95 lakh per year. That\u2019s a 10% rental yield. But if you later sell the shop for the same \u20b950 lakh, your net yield remains 10%. If you bought it at \u20b955 lakh instead, your yield drops because your cost was higher. Conversely, if you bought it at \u20b945 lakh, your yield rises because you paid less for the same rent.<\/p>\r\n<p>Bonds work the same way. The coupon is fixed, but the price you pay for the bond changes in the market. If a bond with a \u20b91,000 face value and 7% coupon is trading at \u20b91,080, you still earn \u20b970 annually, but your effective yield is lower because you paid more upfront. On maturity, you\u2019ll only get back \u20b91,000, not the premium you paid. That\u2019s why YTM often differs from the coupon\u2014it reflects the actual return considering both interest payments and the difference between purchase price and redemption value.<\/p>\r\n<p><strong><b>Yield to Maturity (YTM)<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Scenario<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Bond Price<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Coupon (\u20b970)<\/b><\/strong><\/p>\r\n<\/td>\r\n<td width=\"368\">\r\n<p><strong><b>Current Yield (Coupon \u00f7 Price)<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Buy at Face Value<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,000<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b970<\/p>\r\n<\/td>\r\n<td width=\"368\">\r\n<p>7%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Buy at Premium<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,080<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b970<\/p>\r\n<\/td>\r\n<td width=\"368\">\r\n<p>~6.48%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Buy at Discount<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b9950<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b970<\/p>\r\n<\/td>\r\n<td width=\"368\">\r\n<p>~7.37%<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><strong><b>Example:<\/b><\/strong><\/p>\r\n<ul>\r\n<li>If you buy a REC bond at \u20b91,080, your yield drops below the coupon because you paid extra.<\/li>\r\n<\/ul>\r\n<p>If you buy at \u20b9950, your yield rises since you paid less for the same coupon. Note: the yields in the table are current yields (coupon \u00f7 price). The YTM moves even further in the same direction, because the \u20b980 premium is lost at maturity (pushing YTM below 6.48%), while the \u20b950 discount is gained at maturity (pushing YTM above 7.37%).<\/p>\r\n<h2 style=\"text-align: left\"><b><\/b><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-77904 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds.png\" alt=\"Credit Risk Funds\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/05\/Credit-Risk-Funds-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/h2>\r\n<p>Credit Risk Funds are the adrenaline junkies of the debt world. Their mandate is to invest at least 65% in lower-rated corporate bonds (AA and below, excluding AA+). These bonds pay higher interest because the issuers are riskier. The fund manager\u2019s bet is that the company will not default and may even improve its credit rating over time. If that happens, the bond price rises, boosting the fund\u2019s NAV along with the coupon income.<\/p>\r\n<p>Picture a landlord renting out property to a tenant with a shaky financial history. The tenant agrees to pay double the rent to compensate for the risk. If the tenant stabilizes his income, the landlord benefits both from the high rent and from the improved reputation of the property. But if the tenant defaults, the landlord suffers a heavy loss. That\u2019s exactly how credit risk funds operate.<\/p>\r\n<p>The danger lies in concentration. Even within SEBI\u2019s single-issuer limits (lower for lower-rated papers), some funds allocate large chunks to a single company. If that company defaults, the NAV can collapse overnight. For retail investors, this risk is unnecessary. Most personal financial goals\u2014retirement, education, home purchase\u2014can be achieved with safer debt categories. Credit Risk Funds are better left to institutional players who can absorb shocks. For individuals, avoiding them is the wiser choice.<\/p>\r\n<p>High ratings are no guarantee either. DHFL was rated AAA until early 2019, was downgraded as its troubles grew and defaulted in June 2019. The losses hit many debt schemes, not only credit risk funds, which is why every debt investor should check the quality of the papers in a portfolio.<\/p>\r\n<p><strong><b>Credit Risk Funds<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Aspect<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Explanation<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Example<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Mandate<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>At least 65% in bonds rated AA &amp; below (excluding AA+).<\/p>\r\n<\/td>\r\n<td>\r\n<p>Nippon India Credit Risk Fund (formerly Reliance Credit Risk Fund).<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>High Yield<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Lower-rated issuers pay higher interest.<\/p>\r\n<\/td>\r\n<td>\r\n<p>Bonds of stressed issuers such as DHFL traded at high yields before default.<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Concentration Danger<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Large exposure to one issuer magnifies risk.<\/p>\r\n<\/td>\r\n<td>\r\n<p>DHFL default in 2019 caused sharp NAV markdowns.<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Suitability<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Better for institutions, not retail investors.<\/p>\r\n<\/td>\r\n<td>\r\n<p>Affected schemes suffered sharp losses and side-pocketing.<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide04' class='sa_hover_container' data-hash='Accrued-Interest' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2 style=\"text-align: left\"><strong>15.4 .<\/strong><strong><b>Accrued Interest<\/b><\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-77929 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest.png\" alt=\"Accrued Interest\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Accrued-Interest-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>Now let\u2019s talk about accrued interest. Suppose a bond pays its annual coupon every 1st January. If you buy the bond in July, the seller has already held it for six months and earned half the year\u2019s interest. To be fair, you compensate the seller for that portion by paying a slightly higher price, which includes accrued interest. When January arrives, you\u2019ll receive the full coupon, even though you only held the bond for half the year. This adjustment ensures fairness between buyer and seller.<\/p>\r\n<p>In bond markets, the settlement price\u00a0(the amount you pay) includes accrued interest and is called the \u201cdirty price.\u201d The price excluding accrued interest is the \u201cclean price.\u201d For example, if the clean price is \u20b91,020 and six months of accrued interest on a 7% coupon is \u20b935, the dirty price you pay is \u20b91,055. This mechanism ensures that the seller is paid interest for the period they held the bond, and the buyer earns interest only for the period they hold it.<\/p>\r\n<p><strong><b>Accrued Interest<\/b><\/strong><\/p>\r\n<table>\r\n<tbody>\r\n<tr>\r\n<td>\r\n<p><strong><b>Term<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Meaning<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p><strong><b>Example<\/b><\/strong><\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Clean Price<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Price excluding accrued interest.<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,020<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Accrued Interest<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Interest earned by seller till date.<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b935<\/p>\r\n<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\r\n<p><strong><b>Dirty Price<\/b><\/strong><\/p>\r\n<\/td>\r\n<td>\r\n<p>Settlement price (Clean + Accrued).<\/p>\r\n<\/td>\r\n<td>\r\n<p>\u20b91,055<\/p>\r\n<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n<p><strong><b>Example:<\/b><\/strong><\/p>\r\n<ul>\r\n<li>A bond pays coupon every 1st January.<\/li>\r\n<li>You buy in July \u2192 seller already earned 6 months\u2019 interest.<\/li>\r\n<li>You pay <strong><b>dirty price <\/b><\/strong>(includes accrued interest).<\/li>\r\n<li>In January, you still receive full coupon (\u20b970).<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide05' class='sa_hover_container' data-hash='Should-You-Invest-in-Bonds' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2 style=\"text-align: left\"><strong>15.5 .<\/strong><strong><b>Should you invest in bonds?<\/b><\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-77930 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds.png\" alt=\"Should You Invest in Bonds\" width=\"1080\" height=\"1080\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds.png 1080w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds-300x300.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds-1024x1024.png 1024w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds-150x150.png 150w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds-768x768.png 768w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds-50x50.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds-100x100.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2026\/10\/Should-You-Invest-in-Bonds-96x96.png 96w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\r\n<p>Many investors lean heavily toward equities because of their growth potential. But market shocks\u2014like the sudden crash during the pandemic\u2014remind us that diversification is essential. When stock indices fell sharply, even many long-term SIPs briefly showed negative returns, leaving equity only investors exposed. Bonds, gold, and fixed deposits act as stabilizers in such times. They may not deliver spectacular returns, but they provide safety and predictable income.<\/p>\r\n<p>Today, you can build a portfolio using a mix of assets: equities for growth, mutual funds for diversification, bonds for stability, gold for inflation protection, and fixed deposits for liquidity. The right blend depends on your goals\u2014whether it\u2019s wealth creation, retirement planning, or capital preservation. Bonds deserve a place in that mix because they balance risk and return, ensuring your portfolio doesn\u2019t crumble during market downturns.<\/p>\r\n<p><strong><b>Should You Invest in Bonds?<\/b><\/strong><\/p>\r\n<p>Bonds stabilize portfolios during equity downturns.<\/p>\r\n<p><strong><b>Examples of Diversification:<\/b><\/strong><\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Equities<\/b><\/strong>: Growth (Infosys, Reliance shares).<\/li>\r\n<li><b><\/b><strong><b>Bonds<\/b><\/strong>: Stability (PFC, NHAI tax-free bonds).<\/li>\r\n<li><b><\/b><strong><b>Gold<\/b><\/strong>: Inflation hedge.<\/li>\r\n<li><b><\/b><strong><b>FDs<\/b><\/strong>: Liquidity.<\/li>\r\n<\/ul>\r\n<p>During the COVID-19 crash (February\u2013March 2020), the Nifty 50 and Sensex fell about 38% from their January 2020 peaks. High-quality bonds and gilt funds cushioned portfolios, proving their stabilizing role.<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<div id='text_slider_slide06' class='sa_hover_container' data-hash='Key-Takeaways' style='padding:4.9% 5%; margin:0px 0%; background-color:rgb(255, 255, 255); min-height:405px; '><h2 style=\"text-align: left\"><strong>15.6.<\/strong><strong><b>Key takeaways<\/b><\/strong><\/h2>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-76118 size-full\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Key-Takeaways-4.png\" alt=\"Key Takeaways\" width=\"444\" height=\"418\" srcset=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Key-Takeaways-4.png 444w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Key-Takeaways-4-300x282.png 300w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Key-Takeaways-4-50x47.png 50w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Key-Takeaways-4-100x94.png 100w, https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2022\/01\/Key-Takeaways-4-150x141.png 150w\" sizes=\"(max-width: 444px) 100vw, 444px\" \/><\/p>\r\n<ul>\r\n<li><b><\/b><strong><b>Tax-free bonds <\/b><\/strong>provide interest income exempt from tax (no new issues since 2015\u201316; they are available only in the secondary market).<\/li>\r\n<li><b><\/b><strong><b>PSU bonds <\/b><\/strong>generally carry low credit risk because of government ownership, though most are not explicitly government-guaranteed.<\/li>\r\n<li><b><\/b><strong><b>Coupon rate <\/b><\/strong>is fixed on face value, but actual returns depend on purchase price.<\/li>\r\n<li><b><\/b><strong><b>Yield to Maturity <\/b><\/strong>reflects the true return considering both coupon and redemption value.<\/li>\r\n<li><b><\/b><strong><b>Accrued interest <\/b><\/strong>ensures fairness between buyer and seller during coupon cycles.<\/li>\r\n<li><b><\/b><strong><b>Diversification <\/b><\/strong>with bonds and other assets protects against equity market shocks.<\/li>\r\n<\/ul>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p>\r\n<p>&nbsp;<\/p><\/div>\n<\/div>\n<\/div>\n<script type='text\/javascript'>\n\tjQuery(document).ready(function() {\n\t\tjQuery('#text_slider').owlCarousel({\n\t\t\titems : 1,\n\t\t\tsmartSpeed : 400,\n\t\t\tautoplay : false,\n\t\t\tautoplayHoverPause : false,\n\t\t\tsmartSpeed : 400,\n\t\t\tfluidSpeed : 400,\n\t\t\tautoplaySpeed : 400,\n\t\t\tnavSpeed : 400,\n\t\t\tdotsSpeed : 400,\n\t\t\tdotsEach : 1,\n\t\t\tloop : false,\n\t\t\tnav : true,\n\t\t\tnavText : ['Previous','Next'],\n\t\t\tdots : true,\n\t\t\tresponsiveRefreshRate : 200,\n\t\t\tslideBy : 1,\n\t\t\tmergeFit : true,\n\t\t\tautoHeight : true,\n\t\t\tmouseDrag : false,\n\t\t\ttouchDrag : true\n\t\t});\n\t\tjQuery('#text_slider').css('visibility', 'visible');\n\t\tvar owl_goto = jQuery('#text_slider');\n\t\tjQuery('.text_slider_goto1').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 0);\n\t\t});\n\t\tjQuery('.text_slider_goto2').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 1);\n\t\t});\n\t\tjQuery('.text_slider_goto3').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 2);\n\t\t});\n\t\tjQuery('.text_slider_goto4').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 3);\n\t\t});\n\t\tjQuery('.text_slider_goto5').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 4);\n\t\t});\n\t\tjQuery('.text_slider_goto6').click(function(event){\n\t\t\towl_goto.trigger('to.owl.carousel', 5);\n\t\t});\n\t\tvar resize_77925 = jQuery('.owl-carousel');\n\t\tresize_77925.on('initialized.owl.carousel', function(e) {\n\t\t\tif (typeof(Event) === 'function') {\n\t\t\t\twindow.dispatchEvent(new Event('resize'));\n\t\t\t} else {\n\t\t\t\tvar evt = window.document.createEvent('UIEvents');\n\t\t\t\tevt.initUIEvent('resize', true, false, window, 0);\n\t\t\t\twindow.dispatchEvent(evt);\n\t\t\t}\n\t\t});\n\t});\n<\/script>\n<\/p>                    <\/div>\n\t\t        \n                    <div id=\"videos-tab\" class=\"clearfix eael-tab-content-item \" data-title-link=\"videos-tab\">\n\t\t\t\t        <p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.5paisa.com\/finschool\/wp-content\/uploads\/2021\/10\/coming-soon-person-g8026473a8_1920-removebg-preview.png\" \/><\/p>                    <\/div>\n\t\t                    <\/div>\n        <\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Study Slides Videos 21.1\u00a0 TER Savings \u2013 The Silent Wealth Multiplier The Total Expense Ratio (TER)\u00a0is often overlooked because it appears small\u2014just 1% or 1.5% annually. Yet, this seemingly minor percentage has a profound impact on long-term wealth creation. TER represents the annual cost of fund management, covering salaries of fund managers, research analysts, custodians, &#8230; <a title=\"Mutual Fund Benchmarking\" class=\"read-more\" href=\"https:\/\/www.5paisa.com\/finschool\/course\/financial-planning-through-mutual-funds-course\/mutual-fund-benchmarking\/\" aria-label=\"Read more about Mutual Fund Benchmarking\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":11088,"menu_order":14,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[],"class_list":["post-78090","markets","type-markets","status-publish","format-standard","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/78090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets"}],"about":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/types\/markets"}],"author":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/comments?post=78090"}],"version-history":[{"count":4,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/78090\/revisions"}],"predecessor-version":[{"id":78130,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/78090\/revisions\/78130"}],"up":[{"embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/markets\/11088"}],"wp:attachment":[{"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/media?parent=78090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.5paisa.com\/finschool\/wp-json\/wp\/v2\/categories?post=78090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}