TRI: why funds must be compared with the total return index
Aeterna Wealth · figures from our fund data, updated 12 Nov 2026
A price index (like the Nifty 50 you see on the news) tracks share prices only. A total return index (TRI) also adds back the dividends those companies pay, as if reinvested. A fund collects those dividends too, so comparing it with the price index flatters it by roughly 1 to 1.5% a year. Since 2018 SEBI has required funds to show their returns against the TRI.
Why it matters
Over 10 years, 1.2% a year of dividends adds up to about 13% more wealth. A fund that 'beat the Nifty' by 1% a year against the price index may have fallen behind the TRI.
What we use
- Every active fund is measured against its category's TRI: Nifty 100 for large caps, Nifty Midcap 150 for mid caps, Nifty Smallcap 250 for small caps, Nifty 500 for flexi caps, and so on.
- Index funds are measured against the TRI of the index they track.
- Hybrid funds against a blend of the Nifty 50 TRI and a bond yardstick.
Common questions
Is TRI the same as the Nifty?
No. The Nifty 50 you see quoted is a price index; the Nifty 50 TRI adds reinvested dividends and is always higher over time.
Do index funds beat the TRI?
Almost never: they track it minus their costs. The gap is their tracking difference.
Where can I see a fund against its TRI?
On every fund page on our site, for 6 months, 1, 3 and 5 years.
Want this worked out for your money?
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General information, not investment or tax advice for your situation. Mutual fund investments are subject to market risks; read all scheme-related documents carefully. Past performance does not guarantee future returns.
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