Mutual Fund Companies In India
- The formation of the Unit Trust of India marked the evolution of the Indian mutual fund industry in the year 1963.
- The primary objective at that time was to attract the small investors and it was made possible through the collective efforts of the Government of India and the Reserve Bank of India.
- Unit Trust of India enjoyed complete monopoly when it was established in the year 1963 by an act of Parliament.
- UTI was set up by the Reserve Bank of India and it continued to operate under the regulatory control of the RBI until the two were de-linked in 1978 and the entire control was transferred in the hands of Industrial Development of India (IDBI).
- UTI launched its first scheme in 1964, named as Unit Schemes 1964 (US-64), which attracted the largest number of investors in any single investment scheme over the years.
- UTI launched more innovative schemes in 1970s and 80s to suit the needs of different investors. It launched ULIP in 1971, six more schemes between 1981-84, Children’s Gift Growth Fund and India Fund ( India’s first offshore fund ) in 1986, Master share ( India’s first equity diversified scheme ) in 1987 and Monthly Income Schemes ( offering assured returns ) during 1990s. By the end of 1987, UIT’s assets under management grew ten times to Rs. 6,700 crores.
- Investment in mutual funds in India comprised 7.7 Percent of the gross household financial savings in FY 2008, a significant increase from 1.2 percent in FY 2004.
- The households in India continue to hold 55 Percent of their savings in fixed deposits with banks, 18 percent in insurance and 10 percent in currency as Of FY 2008.