In the month of August, Bachhat carried out a survey to ascertain the pattern of retail investors’ investments in mutual funds. Here we present gist of the results.
One fourth of the participants have never invested in mutual funds
One fourth of all the participants have never invested in mutual funds. Out of the balance participants who have invested in mutual funds, majority have invested since more than 3 years.
Mutual fund investments comprises less than 25% of the investor’s investment portfolio
Out of the participants who have invested in mutual funds, 67% have less than 25% of their total investments in mutual funds. 27% of the participants have invested between 25% to 50% of their portfolio in mutual funds.
Retail investors invest in equities through mutual fund
All the participants have invested in equity funds, while few have also invested in debt funds (40%) and balanced funds (27%) via mutual fund. No participants have exposures to the Gilt funds.
Tax benefits
For little less than 50% of the participants, the reason for investment in mutual funds was to avail Section 80C tax benefits.
Investment in mutual funds for long term benefits
Most participants consider mutual fund investments as long term investments with around 53% investing in it for 3 to 5 years, 20% for 5 to 10 years and 7% for period longer than 10 years.
Many still rely on distributors to invest in mutual funds
46% of the participants depend on distributors and agents to invest in mutual funds. Direct purchase from the mutual fund company comes second with 27% participants opting for it.
SIP is the preferred way of investment
We shall delve upon the findings of the survey result in subsequent posts.
