51% investors withdraw from equity funds within a year
Experts recommend investors to hold on to their equity mutual fund investments for a time period of at least five years
Although more investors are putting their money in mutual funds (MFs) through systematic investment plans (SIPs), they are not necessarily staying invested for the long term. Data from the Association of Mutual Funds of India (Amfi), the MF industry’s trade body, shows that just 29% of equity assets stay invested for more than two years. A huge 51% of equity assets get withdrawn before a year gets over.