1 / 6

Origin Of Mutual Fund Market in India

Over the past few years, mutual fund(https://www.edelweiss.in/oyo/mutualfund) has become one of the most popular investment options in India.<br>This presentation will give you a clear idea of how the mutual fund market was established in India.

shrutinair1204
Download Presentation

Origin Of Mutual Fund Market in India

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Origin of the mutual fund market in india

  2. Introduction Mutual Funds had a humble beginning with the Unit Trust of India (UTI) in the year 1963. And since then mutual funds have evolved to become one of the most popular investment avenues in the country. The UTI was set up as a joint venture between two entities, i.e., the Reserve Bank of India and the Government of India. The primary objective of establishing UTI was to guide novice investors who wanted to buy shares and other financial products in larger firms. Since its inception, mutual funds have drastically evolved through various phases

  3. Major changes 1. Phase Of Inception From its the date of inception in 1963 until 1986, UTI introduced several plans that played a significant role in introducing the concept of mutual fundsin India. The government introduced several income-tax rebates in the UTI schemes to encourage small investors. 2. Entry Of Public Sector By 1988, mutual funds developed into a robust industry and several public sector banks had begun lobbying the government to begin their own mutual fund setups. On Nov 1987, the State Bank of India set up the first on-UTI Asset Management Fund. Following this, other banks and NBFCs like Canara Bank, Indian Bank, Life Insurance Corporation, General Insurance Corporation, created their own mutual funds.

  4. 3. The entry of Private Sector Phase Between the years 1991-1996, the government realized the importance of liberalization and opened up the mutual fund industry for private companies as well as foreign entities. 4. SEBI Interventions And Growth As the mutual fund industry grew rapidly in the 1990s, the government felt the need to bring in some regulation. Consequently, the SEBI Regulation Act in 1996 was introduced, which laid down a set of fair and transparent rules for all the mutual fund stakeholders.

  5. Conclusion • After the numerous progressive measures in September 2012, the SEBI reenergized the mutual fund industry. Presently, AMCs in India manage assets around Rs. 23 lac crore, and the market is rapidly expanding. • While the evolution and growth of mutual funds have been massive in India, it is still very small compared to the global standards. Hence, there is plenty of room for growth.

  6. THANK YOU

More Related