The story behind India’s first mutual fund

The first mutual fund in India was the "Unit Trust of India" (UTI), which was established on February 1964. UTI was formed at the initiative of the Government of India and the Reserve Bank of India (RBI) with the objective of promoting savings and channeling them into the capital markets. It played a significant role in popularizing the concept of mutual funds among Indian investors.

UTI started with the introduction of its flagship scheme, the Unit Scheme 1964 (US-64). It offered units at a face value of Rs. 10, and investors could purchase these units at the prevailing Net Asset Value (NAV). The scheme aimed to provide a safe and attractive investment option for retail investors while ensuring liquidity and capital appreciation.

Over time, UTI introduced various other schemes, catering to different risk profiles and financial objectives. It garnered widespread trust and participation from investors across the country, becoming one of the most prominent financial institutions in India.

The mutual fund industry in India experienced significant growth and diversification after the liberalization of the economy in the early 1990s. With the entry of private sector players and the establishment of the Securities and Exchange Board of India (SEBI) as the market regulator, the industry expanded rapidly.

Today, India boasts a thriving mutual fund industry with numerous asset management companies offering a wide range of mutual fund schemes. These funds invest in various asset classes, such as equity, debt, hybrid, and international markets, providing investors with multiple choices to suit their investment goals and risk appetites.

The journey of mutual funds in India, starting with the pioneering efforts of UTI, has transformed the investment landscape in the country. Mutual funds have become a preferred investment avenue for millions of investors seeking professional management, diversification, and potential for wealth creation.