Close to 55% of retail equity assets has stayed invested for more than two years as on September 2020, shows the latest AMFI data.
Of the total retail equity assets of Rs.5.01 lakh crore, Rs.2.73 lakh crore has stayed put for more than two years as on September 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 1% from 53.56% in June 2020 to 54.61% in September 2020.
AMFI has considered pure equity funds and ELSS for calculating retail equity AUM.
G Pradeepkumar, CEO, Union MF said that the MF industry has been witnessing gradual growth in longevity despite profit booking from equity funds last quarter. He; however, believes that the MF industry has to inculcate long-term investment discipline among investors. “Ideally, investors should stay invested for at least 5 years in equity funds. Hence, the industry need to communicate this message constantly and MFDs can play a major role in it,” said Pradeepkumar.
Heightened volatility in the equity market especially over the last six months has shaken investors’ sentiment, feels George Heber Joseph, CEO and CIO, ITI MF. “Going ahead, I expect retail equity assets longevity to fall as investors are now booking profit and shifting to safer asset classes like debt funds,” added George.
|
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 |
6.38 |
6.83 |
15.31 |
12.33 |
19.35 |
39.8 |
|
Banks/FIs |
1.95 |
16.69 |
16.62 |
17.76 |
1.78 |
45.2 |
|
FIIs |
1.08 |
0.08 |
0.55 |
7.16 |
10.56 |
80.57 |
|
High Networth Individuals* |
2.62 |
4.82 |
8.51 |
16.32 |
19.37 |
48.37 |
|
Retail |
2.31 |
4.24 |
6.42 |
12.67 |
19.74 |
54.61 |
|
Total |
3.39 |
5.11 |
9.33 |
13.94 |
19.41 |
48.82 |
