Mutual fund in India
A mutual fund is a type of professionally managed collective investment scheme that pools money from many investors to purchase securities. In India, Indians and in some cases global investors can invest in it. Mutual fund in India has a comparatively smaller share in the economy.
The first Indian mutual fund was set up in 1963, when the Government of India created the Unit Trust of India (UTI).
In 1987, Government of India permitted public sector banks and the Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) to enter the mutual fund industry.
The State Bank of India’s SBI Mutual Fund was the first mutual fund to be established in 1987. Canara Bank set up Canbank Mutual Fund in the same year. LIC established its mutual fund in 1989 while GIC in 1990.
Unit Trust of India (UTI) was set up by the Reserve Bank of India in 1963 and functioned under its regulatory and administrative control. All mutual funds in India today are regulated by SEBI. The Association of Mutual Funds of India (AMFI) is a self-governing association of Indian Mutual Funds that regulates its members’ sales, distribution and communication practices.
Mutual Fund is in operative in Indian market for more than 4 decades. But less than 10% of the population has invested in it.
Currently, HDFC Mutual fund has the largest market hold. SBI Mutual fund holds the 6th position.