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AMFI data shows that 53% of the equity assets remains invested for at least 2 years. In case of non-equity assets, such a proportion is 35.1%.
Shifali Satsangee, Founder & CEO, Funds Vedaa, said, “Increasing awareness about the benefits of long-term equity investments is the reason why investors are staying invested for long. Increasing popularity of SIPs and goal-oriented investment are the other reasons. I feel that MFDs and AMFI have done a very good job when it comes to communicating the benefits of long-term equity investment to investors.”
On non-equity assets, Shifali said that the new tax regime made debt funds less attractive. She said, “When it comes to non-equity assets, people used to stay invested for longer duration earlier to avail the benefits of indexation. But after the new tax structure was announced last year, there is no incentive to stay longer.”
G Pradeepkumar, CEO, Union MF said believes that the basic nature of equity and debt assets is the reason for this. He said, “Equity is considered a long-term investment, which is why people like to stay invested in it for a longer duration. SIPs also focus more on equity. A lot of debt assets, on the other end, are usually considered short-term investments. People invest in them with a shorter horizon.”
