Mutual fund managers and advisors may be repeating that the past performance does not indicate future performance. However, most mutual fund investors rely on past performance. A recent survey revealed that 59% investors still consider past performance as one of the key benchmarks for investing in mutual funds.

“Oftentimes, mainly influenced by market noise, investors tend to redeem their investments even though they are aware of the importance of long-term investing and the power of compounding. According to data by AMFI, 22.2% equity investors stay invested for 12-24 months and in total 48.7% equity investors redeem their portfolio within two years or less,” said a survey conducted by Axis Mutual Fund.

The survey to ascertain ‘Risk Comprehension’ amongst Indian investors received responses from over 1700 Axis Mutual Fund investors from across the country. The objective of the survey was to obtain insights on investors’ attitude and understanding of risks in mutual fund investing.