Mutual fund industry in india

Abstract

Indian mutual fund industry is more than four and half decades old. The monolith investment intermediary Unit Trust of India (UTI) has come a long way since its inception in July, 1964. This was set up in 1963 established under UTI Act 1963. This big brother of Indian mutual funds flourished in a competition-free market and grew as a hybrid investment company till 1987 when Rajiv Gandhi opened up mutual fund industry to the public sector banks who sponsored their mutual funds. This gold rush was again witnessed when the Indian economy was opened up to the private sector in 1991. The Indian private sector mutual funds made their debut in 1992. The process of liberlisation saw the entry of foreign mutual funds in our land in the year 1994. The foray of public sector banks into the mutual funds business added colour and competition to the industry. By the same token, the entry of private sector has accelerated the process of all round growth of the Indian Mutual Funds through product innovation, investor education and customer service, sponsors of Mutual Funds. Thus, the nascent Indian Mutual Fund industry is three-dimensional in composition. These are Unit Trust of India, other public sector Mutual Funds namely banks sponsored and financial institutions sponsored mutual fund and other was private sector Mutual Funds newline