Even as markets have grown manifold during the past two decades and so have mutual funds, retail investors made the least compared to fund houses in all asset classes as they have been churning their portfolios too fast when markets turned choppy, according to a report.
According to an analysis of investor returns during the past two decades — from 2003 to 2022 — by Axis Mutual Fund, retail investors’ returns were the lowest and those of fund houses the highest, be it in equity or hybrid funds (2003-22) and debt funds (2009-22).
And the Axis AMC analysts attribute this mainly to the frequent churn that investor portfolios faced when the market turns choppy.
Between 2003 and 2022, when fund houses gained as much as 19.1 per cent from equity funds investments, investors, primarily retail, gained the lowest at 13.8 per cent, while systematic investment returns were higher at 15.2 per cent, the analysts said.
Similarly, investors’ returns from hybrid funds were the lowest at 7.4 per

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