The Bank NIFTY is regularly used as a standard by mutual fund managers and investors. Its use as a benchmark of performance informs investors how banking stocks will perform in general and whether certain funds are likely to make gains. The main contention of investors in using Bank NIFTY as a suitable benchmark is to surpass Bank NIFTY returns. Therefore, if a fund exceeds the returns of the Bank NIFTY index, you could consider that fund as a positive investment.