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Total Return Index Value (TRIV)

Updated on March 2, 2023

Total Return Index Value (TRIV) is an Index which considers both capital appreciation and dividend returns while calculating the total return for an investor. The normal price Index considers only the capital appreciation and ignores the dividend payout. TRI value is achieved by taking into consideration the dividend, assuming that the dividend is reinvested. The TRI value is considered an accurate measure of the returns because it uses dividends as well as the interest payment for arriving at the total return. The TRI value is accurate, transparent and credible and is now mandatory for mutual funds. It gives a clear picture of actual returns against the benchmark to investors.

Why isTRI value important?

While evaluating stocks, dividends are an integral part, hence TRI value is a more accurate approach for assessing MF performance as well.
Over a long term, stocks are more value accretive with capital appreciation and corporate actions. Hence MFs should reflect similar kind of returns while evaluating stocks they hold.