Retention Rate: How Volatility Affects Your Retention Rate
Source: Dalbar
When it comes to investing, retention rates measure the cash outflows in proportions to assets to arrive at the length of time the average investor holds a fund. Simply put, it measures how long the average equity investor holds onto or are invested in their funds.
Average Equity Fund Investor Retention Rates (In Years chart-Source: “Quantitative Analysis of Investor Behavior, 2021,” DALBAR Inc. www.dalbar.com