
The words benchmark and index are often used as synonyms in the financial language. Generally speaking, this seems to be right, but there are some differences between an index and a benchmark that every investor needs to know, since a benchmark is not necessarily the same as an index. An index, especially for securities markets, is a key figure that expresses the development of the prices for the respective securities over time. With regard to this, it indicates the basic trend in a capital market. This means an index serves as an indicator of the state of a market or