The chunk of equity assets staying invested longer has risen steadily in the last one year.
Recent AMFI data shows that as on September this year, 35% of the industry’s equity assets has been there for over 2 years. A year ago, the number stood at 28.4%. Similarly, equity assets that have stayed for 12-24 months increased to 31.7%, as against 22.1% a year ago.
This rise is an encouraging sign for the MF industry, as it has come amid significant volatility in equity markets.
Jimmy Patel, MD & CEO, Quantum MF said that the holding period of equity assets has improved because of the popularity of SIPs. Inflows in tax saving funds is also a crucial factor as such schemes have a 3-year lock in period.
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|
Proportion of equity assets that stay invested |
|
|
|
Duration |
2019 trend |
2018 trend |
Change |
|
0-1 Month |
4.7% |
3.9% |
0.8% |
|
1-3 Month |
6.6% |
7.2% |
-0.6% |
|
3-6 Month |
8.1% |
14.5% |
-6.4% |
|
6-12 Month |
13.9% |
23.9% |
-10.0% |
|
12-24 Month |
31.7% |
22.1% |
9.6% |
|
Over 2 years |
35.0% |
28.4% |
6.6% |
In the debt space, there was no considerable change in the trend. As on September this year, 23.1% of the industry’s debt assets has stayed invested for more than 2 years. A year ago, the number stood at 24.5%.
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Proportion of debt assets that stay invested |
|||
|
Duration |
2019 trend |
2018 trend |
Change |
|
0-1 Month |
20.8% |
20.2% |
0.6% |
|
1-3 Month |
13.3% |
13.4% |
-0.1% |
|
3-6 Month |
11.6% |
12.6% |
-1.0% |
|
6-12 Month |
13.4% |
13.8% |
-0.4% |
|
12-24 Month |
17.8% |
15.4% |
2.4% |
|
Over 2 years |
23.1% |
24.5% |
-1.4% |
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