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