Performance Persistence of Mutual Funds with Special Reference to MIP Funds

Mutual Funds offer an opportunity to the common man to invest in a professionally managed and diversified set of securities. They are primarily caregorized as equity funds, debt funds and monthly income funds. Monthly Income Plan (MIP) funds invest a major portion in debt securities and are therefore more suitable for investors looking for sready retums. There are around 50 mutual fund houses offering MIP funds and therefore it is difficult for the investor to take a decision. The objective of the study is to find out whether the performance of MIP funds is consistent and to evaluate whether MIP funds outperform their benchmark. The findings show that there exists positive persistence in retums of MIP Mutual Funds. Can Robeco MIP (G) and HDFC MIP LTP (G) are the two MIP funds which have been giving consistent returns to its investors. In this research, performance of MIP funds was compared with their benchmark and it was found that MIP funds have outperformed their benchmark for the last 3 years and 5 years. But they could not outperform their benchmark for the last 1 year.