Returns made by the average mutual fund (MF) investor are lower than those of scheme or systematic investment plans (SIP). This is true for three broad categories–equity, debt and schemes that invest in both (hybrid) A study conducted by Axis Mutual Fund shows average annualised return made by an equity MF investor was 13.2 per cent between 2003 and 2020. On the other hand, equity SIPs and funds delivered returns of 14.5 per cent and 18.7 per cent respectively. Focus on short term returns, timing the market, impulsive investing techniques and frequent churning of the portfolio are the factors that tend to eat into the gains.
Read more about Mutual funds assets touch record high, says Crisil report on Business Standard. Mutual fund assets bounced back from the decline witnessed in January
Read more about HDFC Mutual Fund sells 2.73% stake in Just Dial for over Rs 108 cr on Business Standard. The sale took place through an open market transaction