Mutual funds History in India (1964 – 1996)

PHASE I – 1964 – 87

  • Mutual Fund Industry started in India in 1963 with the formation of UTI
  • Launch of First Scheme – US 64 – it was a very popular scheme, largely perceived as a debt fund with assured returns. However, it never had to declare its NAV and ran into problems in 1991, since then it has closed down.

PHASE II – 1987 – 93 (Entry of Public Sector Funds)

  • Establishment of State Bank of India MF – the first non UTI MF.
  • Followed by Canbank MF, Life Insurance Corporation MF, Bank Of India MF.
  • UTI still had leadership

PHASE III – 1993 –1996 – Entry of Private Sector Mutual Funds

  • Entry of the Pvt. Sector funds in 1993
  • Morgan Stanley, Templeton, Zurich, Alliance, Pioneer, Threadneedle, all entered India
  • Many Indian houses started looking at this area of business
  • Clients started becoming selective

PHASE IV – (SEBI Regulation for Mutual Funds) 1996

  • SEBI -the regulatory authority
  • UTI comes under SEBI regulation voluntarily
  • Sebi regulations were enacted and implemented

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