Mutual funds monthly income plans (MIP) assets fall 26% despite robust returns
The fixed income head added that duration products enjoy a cost advantage of 70-80 basis points over MIP schemes on a weighted average basis, which could have also influenced investors' decision. Short-term income funds typically charge between 0.5-1% as expense ratio, long term income funds charge 1.1-1.7% as expenses, while MIP schemes charge more than 2%.
Investors also moved their money into fixed deposits, tax-free bonds, company deposits, and retail NCDs which were giving returns of between 10-12% in 2012, according to experts.
Stocks More on