Market goes up and down. No system in the world can assure that equity linked investment will only go up. Accepting the loss without understanding long term impact is not a wise decision. So, it is important to know a methodology to measure the potential outcome in the long run. It is known secret that benchmarks (SENSEX, NIFTY) move upward in the long run and give good return on investment (Click here). So, we strongly recommend measuring the performance of your portfolio against benchmark. A good portfolio returns more profit than benchmark in upward market and less loss than benchmark in downward market. Following examples have explained the same.

Scenario	Market Direction	Portfolio Movement	NIFTY Movement	Portfolio Performance
1		Invested: Rs. 100000 Finally: Rs.112385 Change: +12.39%	Start: 5934 End: 6274 Change: +5.73
2		Invested: Rs.100000 Finally: Rs.97845 Change: -2.16%	Start: 5934 End: 5546 Change: -6.54
3		Invested: Rs. 100000 Finally: Rs.103380 Change: +3.38%	Start: 5934 End: 6274 Change: +5.73
4		Invested: Rs.100000 Finally: Rs.85768 Change: -14.23%	Start: 5934 End: 5546 Change: -6.54
5		Invested: Rs. 100000 Finally: Rs.97845 Change: -2.16%	Start: 5934 End: 6274 Change: +5.73
6		Invested: Rs.100000 Finally: Rs.103380 Change: +3.38%	Start: 5934 End: 5546 Change: -6.54

This methodology is NOT specific to APS. Investors can evaluate the performance of their existing strategy or recommendation service against this methodology.

External References:
http://www.kotaksecurities.com/ks/horizon-share-market-newsletter/april-16-2012/mutual-funds.html
http://articles.economictimes.indiatimes.com/2010-09-27/news/27597535_1_benchmark-mutual-funds-beta

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