SUBSCRIBE NEWSLETTER
  • Change Language
  • English
  • Hindi
  • Marathi
  • Gujarati
  • Punjabi
  • Tamil
  • Telugu
  • Bengali
  • MF News 53% of retail equity assets stays put for over 24 months

    53% of retail equity assets stays put for over 24 months

    AMFI data shows that of Rs. 2.45 lakh crore retail equity assets as on June 2016, Rs.1.30 lakh crore remained invested for over two years.
    Team Cafemutual Aug 5, 2016

    Over half of retail equity assets remained invested for over two years, shows the latest AMFI data. Of Rs. 2.45 lakh crore retail equity assets as on June 2016, 53% or Rs.1.30 lakh crore remained invested for more than 24 months.

    Traditionally, retail investments are known to be sticky unlike institutions who book profits at regular intervals.

    A major chunk of retail investors invest through SIP. Nilesh Shah, MD & CEO, Kotak MF had earlier told Cafemutual that the mutual fund industry has been receiving inflows of Rs.2,800 crore per month in equity funds through SIPs. All this money is long term in nature. This is due to effort of AMCs and IFAs who have created awareness about benefits of investments through SIPs.”

    In non-equity assets too, 47% or Rs. 28,884 crore of Rs. 60,882 crore retail assets have holding period of over two years.

    Interestingly, FIIs also held a major chunk of investments for more than two years. Of the Rs. 2,787 crore held by FIIs in equity funds, 68% or Rs. 1,885 crore remained invested for more than two years. Banks also held Rs. 1,852 crore or 30% of their total equity investments (Rs. 6,123 crore) for more than two years. The prospects of Indian economy doing well has made FIIs invest for a longer time horizon, say industry officials.

    However, the holding period of corporate, banks and FIIs in debt funds is for a much shorter horizon. Typically, FIIs and banks are short term investors.

     

    Have a query or a doubt?
    Need a clarification or more information on an issue?
    Cafemutual welcomes all mutual fund and insurance related questions. So write in to us at newsdesk@cafemutual.com

    Click to clap
    Disclaimer: Cafemutual is an industry platform of mutual fund professionals. Our visitors are requested to maintain the decorum of the platform when expressing their thoughts and commenting on articles. Viewers are advised to refrain from making defamatory allegations against individuals. Those making abusive language or defamatory allegations will be blocked from accessing the web site.
    0 Comment
    Be the first to comment.
    Login or Sign up to post comments.
    More than 2,07,000 of your industry peers are staying on top of their game by receiving daily tips, ideas and articles on growth strategies. Join them and stay updated by subscribing to Cafemutual newsletters.

    Fill in the below details or write to newsdesk@cafemutual.com and subscribe to Cafemutual Newsletter now.
    Cafemutual is an independent media platform and focuses on providing knowledge and information for the benefit of finance professionals. We do not promote any particular brand or asset category.