In an encouraging development for the MF industry, equity assets staying invested for more than 2 years has seen an uptick.
Recent AMFI data shows that as on December 2019, 37.2% of the industry’s equity assets has been there for over 2 years. A year ago, the number stood at 29.7%.
Similarly, equity assets that have stayed for 12-24 months increased to 29.8%, as against 23.8% in December 2018.
Experts attribute this to success of ‘Mutual Fund Sahi Hai’ campaign and rising popularity of SIPs, which has played a key role in inculcating long-term investment culture. Further, inflows in tax saving funds is also a crucial factor as such schemes have a 3-year lock in period.
Meanwhile, in the debt space, the chunk of assets staying invested for over 2 years has declined gradually since 2017.
As on December 2019, 21.7% of the industry’s debt assets has stayed invested for more than 2 years. In December 2018, the number stood at 23.9% and at 24.9% in December 2017.
