Mutual Funds history in India

[Jay Scott]

I am planning to enter into the field of Mutual Funds. But before doing this i would like to have fare knowledge about the history of Mutual Funds in India. So can you provide me some knowledge related with this topic? I would be very much thankful to you if you do this. Please do help and also try to do it as early as you can. Thanks.

[Chandranath]

I have bit knowledge about this topic. So i will try to provide those. In the year 1963, the Indian mutual fund industry was being established. With the establishment of this industry the primary objective at that time was to attract the small investors towards this industry. This objective was achieved by the support of Government of India and the Reserve Bank of India. The history can be divided in the five phases-
1. Establishment and Growth of Unit Trust of India - 1964-87
2. Entry of Public Sector Funds - 1987-1993
3. Emergence of Private Sector Funds - 1993-96
4. Growth and SEBI Regulation - 1996-2004
5. Growth and Consolidation - 2004 Onwards
Refer and this post and try to gain the knowledge about the history. I think this will help you out. If you require more help on this topic, then reply me back.

[Jacob.d]

I have knowledge about the history of the Mutual fund. Try to go through the following lines-

• Establishment of Unit Trust of India - 1963
• Unit Scheme 1964 launched - 1964
• UTI Mutual Fund - 1965
• Entry of non-UTI, Public Sector mutual funds - 1987
• Entry of private sector funds - 1993
• Substitution of prevalent rules by SEBI (Mutual Funds) Regulations - 1996
• Division of UTI in two entities - 2003
• Existence of 421 schemes, managing assets worth Rs. 153108 - 2004

I think this will give a clear idea about the history of mutual fund.

[Jay Scott]

I have referred the post given by Chandranath and i founded it as interesting one. As you have mentioned that the history of mutual fund can be divide in the five phases, so can you provide me some detailed information about those phase related with the fund. I would even thank you for the help which you have provided to me. Please do remember to post your reply consisting of the detailed information about the phases..

[Chandranath]

Here are the details of the five phase about the history of mutual fund.

Establishment and Growth of Unit Trust of India - 1964-87
During this period UTI was being established by the Reserve Bank of India. UTI operated under the control of RBI for the two years. After 1978 the control was given to Industrial Development Bank of India. UTI has tried to launch number of schemes during the period of 1970s and 1980s. This was done in order to bring more people towards this industry.

Entry of Public Sector Funds - 1987-1993

During this period there were many entries of the public sector players. SBI Mutual Fund became the first non-UTI mutual fund in India in the year 1987. After the entry of SBI no of other banks entered and they are as follows. LIC Mutual Fund, Indian Bank Mutual Fund, Bank of India Mutual Fund, etc.

Emergence of Private Sector Funds - 1993-96

It allowed the foreign fund management companies to enter in to the mutual fund industry.

Growth and SEBI Regulation - 1996-2004

During this particular period SEBI introduced strict rules and it lead to tremendous growth of the mutual fund industry.

Growth and Consolidation - 2004 Onwards

During this period the industry has observed no of merger and acquisition.29 funds were added at the end of March 2006.