HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
The mutual
fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank the. The
history of mutual funds in India
can be broadly divided into four distinct phases:-
fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank the. The
history of mutual funds in India
can be broadly divided into four distinct phases:-
First Phase (1964-87) -Unit
Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India
and functioned under the Regulatory and administrative control of the Reserve
Bank of India.
In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of
India (IDBI) took over the regulatory and administrative control in place of
RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6,700 crores of assets under management.
Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India
and functioned under the Regulatory and administrative control of the Reserve
Bank of India.
In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of
India (IDBI) took over the regulatory and administrative control in place of
RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6,700 crores of assets under management.
Second Phase (1987-1993)-
(Entry ofPublic Sector Funds) 1987 marked the entry of non- UTI, public sector mutual
funds set up by public sector banks and Life Insurance Corporation of India
(LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the
first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual
Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual
Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990. At the end of 1993, the mutual fund industry had assets under
management of Rs.47,004 crores.
Third Phase (1993-2003)- (Entry of Private Sector Funds) With the entry of private sector funds in 1993, a new era started
in the Indian mutual fund industry, giving the Indian investors a wider choice
of fund families. Also, 1993 was the year in which the first Mutual Fund
Regulations came into being, under which all mutual funds, except UTI were to
be registered and governed. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in July
1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual
fund houses went on increasing, with many foreign mutual funds setting up funds
in India
and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs.
1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.
in the Indian mutual fund industry, giving the Indian investors a wider choice
of fund families. Also, 1993 was the year in which the first Mutual Fund
Regulations came into being, under which all mutual funds, except UTI were to
be registered and governed. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in July
1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more
comprehensive and revised Mutual Fund Regulations in 1996. The industry now
functions under the SEBI (Mutual Fund) Regulations 1996. The number of mutual
fund houses went on increasing, with many foreign mutual funds setting up funds
in India
and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs.
1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.
Fourth Phase (since February 2003)-
In February 2003, following the repeal of theUnit Trust of India Act 1963 UTI was bifurcated into two separate entities. One
is the Specified Undertaking of the Unit Trust of India with assets under
management of Rs.29,835 crores as at the end of January 2003, representing
broadly, the assets of US
64 scheme, assured return and certain other schemes. The Specified Undertaking
of Unit Trust of India, functioning under an administrator and under the rules
framed by Government of India and does not come under the purview of the Mutual
Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB,
BOB and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March 2000
more than Rs.76,000 crores of assets under management and with the setting up
of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with
recent mergers taking place among different private sector funds, the mutual
fund industry has entered its current phase of consolidation and growth. As at
the end of September, 2004, there were 29 funds, which manage assets of
Rs.153108 crores under 421 schemes.
Contents:
PREFACE
ACKNOWLEDGEMENT
CHAPTER – 1 1.0 INTRODUCTION
1.1 Overview of
Indian Mutual Fund Industry
Indian Mutual Fund Industry
1.2 Profile
of victory portfolio limited
of victory portfolio limited
1.3
Problems of the Organization
Problems of the Organization
1.4
Competitor’s Information
Competitor’s Information
1.5 SWOT
Analysis
Analysis
CHAPTER –2 2.0 CONCEPTUAL DISCUSSION
2.1
Theoretical backdrop and Literature Review
Theoretical backdrop and Literature Review
2.2 Investors behaviour
CHAPTER –3 3.0
OBJECTIVES AND METHODOLOGY
OBJECTIVES AND METHODOLOGY
3.1 Significance
of the Study
of the Study
3.2 Managerial
Usefulness of the Study
Usefulness of the Study
3.3 Objectives
3.4 Scope of the
Study
Study
3.5
Methodology
Methodology
CHAPTER –4 4.0
DATA ANALYSIS AND INTERPRETATIONS
DATA ANALYSIS AND INTERPRETATIONS
CHAPTER –5 5.0 FINDINGS AND RECOMMENDATIONS
ANNEXURES