Characteristics and performance of real return funds

Authors

  • Amy F. Lipton Saint Joseph's University, Philadelphia
  • Richard J. Kish Lehigh University

DOI:

https://doi.org/10.61190/fsr.v22i3.4656

Keywords:

Inflation-protected securities, TIPS, Real return funds, Mutual fund performance

Abstract

U.S. Treasury Inflation-Protected Securities (TIPS) are the primary security in real return mutual funds. This article focuses on a key question for investors: Do real return mutual funds add value to a portfolio or are they just redundant securities? We find that while some real return funds do provide a return in excess of the rate of inflation, their absolute and risk-adjusted returns are rarely better than a TIPS Index. Further, few of these funds provide investors with positive alpha after controlling for either their benchmarks or macroeconomic and systematic factors.

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Published

2013-09-30

How to Cite

Lipton, A. F., & Kish, R. J. (2013). Characteristics and performance of real return funds. Financial Services Review, 22(3), 269–290. https://doi.org/10.61190/fsr.v22i3.4656

Issue

Vol. 22 No. 3 (2013): FSR Fall 2013

Section

New Original Submission

License

Copyright (c) 2013 Academy of Financial Services

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