What is TRI (Total Returns Index)?

[Pugazh]

Could someone please help me understand what is TRI?

From the below representation, I could see that Nasdaq and S&P 500’s TRI is higher than Nifty’s TRI. Does that mean US stocks gives better returns than Indian stocks?

@ShubhS9 @Prayag @Bhuvan

[Bhuvan]

@Pugazh

Could someone please help me understand what is TRI?

The chart of indices you see on Kite are price returns indices, they don’t include dividends issued by the underlying companies. A total returns index includes dividends

What is total Return Index index and how is it calculated?

As we know Nifty index represents a basket of 50 stocks. The increase or decrease in the index value gives a rough estimate of the overall capital appreciation in stocks. For this reasons, Nifty is often used as a benchmark for market performance. However, Nifty captures only the capital appreciation from equity investments and does not consider the dividend receipts. This is where Total Return Index comes into play. The ‘Total Return Index’ of Nifty besides capturing the capital appreciation o…

@Pugazh

From the below representation, I could see that Nasdaq and S&P 500’s TRI is higher than Nifty’s TRI. Does that mean US stocks gives better returns than Indian stocks?

That means sometimes US markets have higher returns and sometimes, Indian markets have higher returns There are no guarantees in the markets, and everything is cyclical

[Pugazh]

@Bhuvan Thanks for the quick response

@Bhuvan

That means sometimes US markets have higher returns and sometimes, Indian markets have higher returns There are no guarantees in the markets, and everything is cyclical