What is the status of setting a benchmark for a UITF?

Setting a benchmark for a Unit Investment Trust Fund (UITF) is generally considered optional. This means that while having a benchmark can provide a point of reference for measuring performance, it is not a strict requirement for all UITFs. Fund managers often use benchmarks to compare the fund's performance against a representative market index or another standard, but the choice to set one is left to the discretion of the fund manager or the governing body of the UITF.

This optionality allows for flexibility in fund management, as different funds may have varying objectives, strategies, and types of underlying assets. Therefore, the absence of a mandatory benchmark allows fund managers to align their performance evaluation methods with their investment approach and the specific needs of their investors. It is important, however, for investors to understand the absence of a benchmark may limit their ability to gauge the UITF's relative performance in the market.