Skip to main content

Indian Mutual fund industry-An overview

Indian Mutual fund industry is shining high… I have found this article on a website ,which says that it is a gift of 5 great events…
Current status:
• Around 35 mutual funds
• a total asset size of Rs 402,029 crore (Rs 4,020.29 billion),.


1. 1963-64: The UTI monopoly

• UTI (Unit Trust of India) was India's first MF.
• Was created in December 1963 through a special Act of Parliament and functioned under the Reserve Bank of India.
• Launched its first scheme, US-64 (Unit Scheme-1964) in 1964.
• Received almost 126,000 applications for the scheme for Rs 17.4 crore (Rs 174 million).
• UTI remained the only fund house in India until public sector companies were allowed to enter the space in 1987.
• UTI remained India's largest MF till 2002.

2. 1993: Private sector MFs allowed

• Private sector and foreign MFs were allowed from 1993.
• The Kothari Pioneer (KP) MF was India's first private sector MF.
• With higher salaries and better fund management practices, private sector MFs changed the MF landscape in India.
• Currently there are 31 private sector MFs against just four public sector ones.
• In 2002, Franklin Templeton MF acquired KP MF.

3. 1996: Welcome SEBI guidelines

• Market regulator, Securities and Exchange Board of India (Sebi), gave a comprehensive set of MF guidelines, which form the basis of most of the current laws that govern MFs in India now.
• These guidelines laid down the laws in a number of issues like disclosures, investment mandates, and others.

4. 2001-02: The Great UTI Scam

• In an unprecedented move in June 2001, UTI suspended its sale and repurchase of units of its flagship of US-64 because of its messy financials.
• In 2002, it declared its net asset value (NAV) for the first time and at Rs 5.81, the scheme was way below its par value of Rs 10. Subsequently, UTI was bifurcated.

5. 2003: AMFI certification is made compulsory

• The MF industry through Association of Mutual Funds of India (AMFI) and Sebi took initial steps to increase transparency in the way schemes were sold.
• After banning agent commissions, AMFI made it mandatory for them to get AMFI-certification to be eligible to sell schemes
Labels:

Comments

hybrid said…
An investment fund is a professionally managed collective investment that collects money from many investors in stocks, bonds, short-term money market instruments and / or other securities
Sunday, January 04, 2009 9:51:00 PM
Post a Comment

Popular posts from this blog

Agriculture - Oxygen for manyyyy

Talking on agriculture, About 75% of the Indian population lives in rural areas and about 80% of this population is dependent on agriculture for its livelihood.Agriculture accounts for about 37% of the national income. The development of the rural areas and of agriculture and its allied activities thus becomes vital for the rapid development of the economy as a whole. Agricultural Productivity Even though India occupies the first or second position in the world in several crops in terms of area and production, it's rank in terms of productivity per hectare in the world is 52 for rice, 38 for wheat and much low in several other crops. The productivity of some crops is not only low but also remained stagnant over the years. The yield gap needs to be bridged through an integrated package of technology and agricultural policies to reap the untapped production potential, particularly, in rain-fed and other low productivity areas. What the INDIA INC says abt it? A...
6 comments
Read more

Day 5 # liveankit's logo unveiled...

Day 5 for liveankit, 615 visitors( the time when i typed it..), the logos for liveankit have been unveiled and i keep the finalization decision on u, as per the poll, i'll finalize the logo havin maximum votes... The day was good for me.. bit busy full day, so most of the clicks on website today are by u ppl, i am really happy with the way u guys are reacting to my blog, almost everyone told me to add information, as it is meaningful( not talking of my personal storiesssssss :):) :) talkin of economy topicss)  Thts not enough, i need your further support, Last evening i decided to be slim( i hope my photos tell u tht i have xtraa(Raise the power to 10) poundss... i wrote the same on the blog, I have been taking tips, two ppl are actively taking interest in this regard, the two cool friends of two diff countries Mandi Dabwali and SIWAN.... Let me tell u something in one paragraph :) The last time when i went on dieting... Waist became 36 from 28 Avoided eating butter , so started ea...
14 comments
Read more

New Journey!!! - Plannin to write my blog

Well, I m no Amitabh Bachhan, No Aamir Khan, tht ppl will be reading my blog or will be finding it worth reading. All i know is tht i am getting inspired from Ankur to write it. This is my opening post meant to be read for ppl close to me.   Its 10:10pm now, September 25 th 2008 , I have decided to replicate the high flying Blogging concept whilst I know I have the slightest listeners. Holidays have started, No great work to do these days, except getting inclined to TV and gossips, ‘Roz ki faaltu baatein’ would be the core activity in my list regularly till 5 th October.   Will be missing my college buddies, Its always a dependence tht gets created when you meet the same ppl regularly, The best and worst part of “Chhutiyan-Holidays’ is the “ending/missing of monotonous routine” , on one side I m happy tht this break would end up my daily 9 to 6 college routine and on the same time I will be / already started missing my friends and foes J . Tension mat lo, foes are an import...
15 comments
Read more