title: Benchmark-driven investment strategy
text: # Benchmark-driven investment strategy
  
  Benchmark-driven investment strategy is an investment strategy where the target return is usually linked to an index or combination of indices of the sector or any other like S&P 500.
  
  With the Benchmarks approach the investor chooses an index of the market (benchmark). The goal of the fund manager is to try to beat the index performance-wise.
  
  * The strategic asset allocation is usually delegated to the benchmark chosen
  * The asset managers stay concentrated to tactical asset allocation and fund (security) selection
  * No volatility control over time
  * Without volatility constraints over a long period the investor is expected to get higher returns
  