Axis Mutual Fund conducted a survey to understand investors’ risk comprehension in mutual fund investing. The survey, which surveyed over 1700 investors, revealed that while investors recognize the importance of investing their money to appreciate it, 59% still consider past performance as a key benchmark for mutual fund investments.
Despite this, many investors still redeem their investments due to market noise, despite being aware of the power of compounding. The survey also revealed that 89% of investors believe understanding their risk appetite is crucial in choosing the right mutual fund, but only 27% consider their risk appetite before investing.
The survey also revealed that 53% of investors are not confident in personal risk assessment when choosing a mutual fund. It is crucial to understand that each investor has a different risk appetite based on their investment profile, financial goals, and needs. According to data 22.2% of equity investors stay invested for 12-24 months, and in total 48.7% of equity investors redeem their portfolio within two years or less.Ashish Gupta, CIO, Axis AMC said, “Investing is all about navigating through uncertainties and staying committed to the investment journey. While there has been an increasing influx of investors in the markets today, conversations about ‘risk’ and ‘risk appetite’ are minimal at best.”
