Mutual fund Update: Two-third of retail MF investors stay invested beyond a year

It is often believed that corporate investors or HNIs (High Networth Individuals) who have a more professional approach to mutual fund investors tend to remain invested for a longer period. Nonetheless, age-wise analysis of assets under management at the end of September 2018 shows that it is retail investors that remain invested for a longer period. On an average, 60 per cent of retail investors (equity fund) remain invested for more than a year and almost 40% remain invested for more than 24 months or more.
 
This is even true for non-equity investment, where 66 per cent of retail investors remain invested for more than one year and almost 40 per cent for more than a year. Banks and financial institutions are the most agile investors. Only six per cent in case of equity and 9.83 per cent in case of non-equity remain invested for more than two years.

 
 
Even in case of debt funds, retail investors remain invested for the longest duration. Almost 49 per cent of the retail investors have remained invested for more than two years. One of the reasons for a higher portion of retail investors remaining invested for more than two years in the non-equity fund is because of better tax treatment if the investor remains invested for more than three years.