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In a sign that indicates increasing maturity among Indian MF investors, AMFI data shows that the holding period of investors in equity funds have increased substantially over the years.
AMFI data shows 55% of the total equity assets have a holding of more than 24 months. Interestingly, 59% of these equity assets are held by retail investors.
Chennai MFD Chokkalingam Palaniappan of Prakala Wealth attributes this to increased investor awareness and SIPs. He said, “The market is on a good run and the volatility is also comparatively lower, which is why investors have more confidence in holding their equity investments. Also, a lot of long-term investments are coming through the SIP route, which are generally linked to a long term financial goals.”
Mysore MFD VR Aiyappan of Mera Funds also echoed a similar sentiment. He said, “In earlier days, people used to sell their investments when markets fell. Now, investors are making long-term, goal-oriented investments and are aware about the volatility of the markets. Also, there has been no major dip in the markets since COVID-19, which has increased the confidence of the investors.”
Agra MFD Shifali Satsangee of Funds Vedaa feels that this trend would only improve. She attributed this to efforts by AMFI and MFDs to create awareness among retail investors on benefits of a goal-oriented approach towards investment.
