“There is a behaviour gap between investor and investment that is caused by emotions, when retail investors exit at any correction and flock back when there is any rise (in markets),” said Amar Pandit, a Mumbai-based financial planner.
“Investors should realise that they would gain more by staying in the market in the long term.”
Around 1.6 million investors have exited MF investments in the last fiscal year as returns slowed down, the Association of Mututal Funds of India has said.
According to Value Research, around 70% of the major mutual funds have witnessed a fall in their assets under management.
The highest return clocked by any fund house is 8% in last one year.
Analysts say that retail investors should review their portfolios every year and exit scheme that are not giving good returns.
However, they should not exit schemes with good track record.