Gradual rise of long-term mutual-fund investors

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© Dhuraivel Gunasekaran Gradual rise of long-term mutual-fund investors

Retail investors now appear to be staying invested in mutual funds (MFs) a little longer. As per AMFI, the number of investors who stay invested in MFs for more than two years, has gone up marginally. In 2018, just 39.9 percent of the total retail investors’ investments was held for more than two years. In 2021, it has gone up to 54.8 percent. While market experts say that two years is not long enough to make a prediction on a long-term trend, investors should know that the probability of making losses goes down as the investment horizon goes up.