Close to 54% of retail equity assets has stayed invested for more than two years last quarter. Retail equity AUM’s longevity has improved from the March quarter when there was extreme market volatility.
Of the total retail equity assets of Rs.4.50 lakh crore, Rs.2.40 lakh crore has stayed put for more than two years as on June 2020, shows the age-wise analysis of MF assets by AMFI.
The proportion of retail equity AUM that stayed invested for more than two years increased by 5% i.e. from 48.72% in March 2020 to 53.56% in June 2020.
AMFI has considered pure equity funds and ELSS for calculating retail equity AUM.
Experts attributed this to the sharp recovery in the market. Swarup Mohanty, CEO, Mirae Asset MF believes that the recent recovery in market has encouraged many investors to stay put and focus on their long term goals.
Suresh Sadagopan, Ladder7 Financial Advisories, Mumbai highlights that many investors have understood market cycles. “Many investors who have been investing for 5 years have understood why a market correction offers good opportunities to invest more and stay put with existing holdings.”
Further, the percentage of retail equity assets staying invested for one to two years and six months to one year has declined to 11% and 20%, respectively. However, the industry witnessed a marginal spike in retail equity assets staying invested for less than 6 months.
Proportion of equity assets that stay invested as on June 2020:
|
Investor Classification |
0-1 month % of category |
1-3 month % of category |
3-6 month % of category |
6-12 month % of category |
12-24 month % of category |
> 24 month % of category |
|
Corporates |
9.48 |
13.26 |
9.48 |
13.08 |
19 |
35.71 |
|
Banks/FIs |
17.73 |
5.76 |
30.94 |
35.92 |
2.12 |
7.53 |
|
FIIs |
0.95 |
0.08 |
0.69 |
10.62 |
4.59 |
83.07 |
|
High Networth Individuals* |
3.18 |
7.31 |
10.38 |
12.93 |
20.5 |
45.7 |
|
Retail |
2.39 |
4.61 |
7.66 |
11.39 |
20.39 |
53.56 |
|
Total |
4.42 |
7.64 |
9.24 |
12.52 |
19.95 |
46.22 |
