In India mutual funds came into existence in the year 1963 with UTI (unit trust of India).it was the only mutual fund at that time which was public held and enjoyed a monopoly power till a long time. It was governed under uti act; 1963.the first mutual product from uti was UTI MASTER SHARE in 1986. Before that the first scheme launched by UTI was US-64 followed by CGGF in 1986.
In the year 1987 banks and other financial institutions were allowed to set up mutual funds. RBI (reserve bank of India) was made the sponsor of mutual funds and as public sector banks came under the purview of RBI they came under the guidelines of RBI. And later on they were both brought under the guidelines SEBI and RBI. STATE BANK OF INDIA (sbi) was the first bank-sponsored mutual fund followed by LIC & CAN BANK.
But till that time UTI was the undisputed leader in the market. And later when the wave of liberalization entered India, in 1993 private sector mutual funds were allowed to come up. The first private sector mutual fund was JV and JM Kothari pioneer was the first private sector mutual fund, in 1996. The coming of private sector mutual funds brought innovative product range, good management techniques, and investor servicing techniques. With more and more mutual funds with wide product range coming up customers became selective. In 1996 mutual funds dividends were made tax free in the hands of investor. In the year 2002 the mutual funds assets were approximately 100,000 crore.
In the year 1987 banks and other financial institutions were allowed to set up mutual funds. RBI (reserve bank of India) was made the sponsor of mutual funds and as public sector banks came under the purview of RBI they came under the guidelines of RBI. And later on they were both brought under the guidelines SEBI and RBI. STATE BANK OF INDIA (sbi) was the first bank-sponsored mutual fund followed by LIC & CAN BANK.
But till that time UTI was the undisputed leader in the market. And later when the wave of liberalization entered India, in 1993 private sector mutual funds were allowed to come up. The first private sector mutual fund was JV and JM Kothari pioneer was the first private sector mutual fund, in 1996. The coming of private sector mutual funds brought innovative product range, good management techniques, and investor servicing techniques. With more and more mutual funds with wide product range coming up customers became selective. In 1996 mutual funds dividends were made tax free in the hands of investor. In the year 2002 the mutual funds assets were approximately 100,000 crore.
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