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
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
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