Performance indicators or benchmarks are used to determine the relative performance of portfolios and investments. They are particularly useful in evaluating unit trust funds. In Malaysia, the commonly used benchmark for measuring stock returns and equity unit trusts is the FTSE Bursa Malaysia KLCI (FBM KLCI). Additionally, Standard & Poor’s Micropal and Lipper Analytical Services are two of the fund services that track and analyse the performance of unit trust funds in Malaysia.
In reviewing the performance of unit trust funds, an investor must be familiar with the following definitions of fund returns or performance indicators:
Total Returns
The percentage of change in a fund’s price (adjusted for unit splits and distributions paid out) for the period.
Average Annual Return
The percentage of change in a fund’s price (adjusted for unit splits and distributions paid out) for the period divided by the number of years under review. It is used to compare unit trust returns over periods exceeding one year.
Distribution Yield
Distributions paid to unit holders out of the fund’s income (derived from capital gains, dividend and interest/profit income) measured as a percentage of a fund’s repurchase price.
above and 
above.