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In a sign that indicates maturity of investors in mutual funds, AMFI data shows that the majority of equity assets or 54.7% of the total equity assets has stayed invested for over 24 months.
Since the majority of individual investors like retail investors and HNIs invest in equity funds, this trend indicates that many investors have understood the long term benefits of equity investing.
In fact, the data shows that retail investors hold 59.1 % of equity assets for periods greater than 24 months.
Experts attribute this to mark to market gains and handholding by distributors. 78% of retail equity AUM has been invested through distributors in September 2024.
The data further shows that maturity of investors in non-equity funds like debt funds, conservative hybrid funds and Gold ETFs has also increased with 40% of the total debt AUM remaining invested for over 2 years.
The data further shows that 14% of retail debt assets is redeemed within a month’s time. Such a figure was just 4% in equity funds.
