Mutual fund investors steer towards calm waters of long-term investing

ENDURANCE OVER IMPULSE: Anchor down for the long haul, doubling 5+ year holdings

A recent industry report reveals a clear shift in mutual fund (MF) investor behaviour, with a marked preference for long-term holdings.

 

The share of MF assets held for more than five years has more than doubled in the past five years, rising from 6.5 per cent in March 2019 to 15.7 per cent in March 2024.

 

Likewise, the proportion of assets held for three to five years has also grown appreciably, increasing from 8.8 per cent to 17.7 per cent during the same period.

 

This trend highlights that investors are increasingly prioritising long-term growth and financial planning over immediate returns.