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Evolution of the mutual fund industry in India :

The story of the mutual fund industry in India began in 1963 when UnitTrust of India came into being. The history of mutual fundsin India canbe divided into the following hases.

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First phase - 1964 to 1987

Unit Trust of India !UTI" was set u by the #eserve $ank of India. TheIndustrial %eveloment $ank of India !I%$I" took over UTI in 19&'. UTIlaunched its first scheme in 196( and had #s.6)&** crores of assetsunder management in 19''.

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Second hase - 1987 to 199!

In 19'&) ublic sector mutual fundsentered the fray) the first entrantbeing the +$I ,utual -und !nonUTI mutual fund".

The /anbank ,utual -und) Indian $ank ,utual -und and $ank of$aroda ,utual -und were established in 19'&) 19'9 and 1990resectively.

The mutual fundsindustry had #s. (&)**( crore assets undermanagement in 1993.

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"hird hase - 199!-#$$!

In 1993) othari 2ioneer !subseuently merged with -ranklinTemleton" became the first rivate sector mutual fund to be registered.

4 comrehensive +5$I ,utual -und #egulations were formulated in1996 which is currently being followed.

+everal foreign mutual funds set u funds in India in late 9*s.

There were around 33 mutual funds with #s.1)01)'* crore assets in

0**3.

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Fourth hase - since Fe%ruary #$$!

UTI was bifurcated into two entities after the reeal of the Unit Trust ofIndia 4ct in 0**3.

The +ecified Undertaking of the Unit Trust of India does not fall underwithin the ambit of mutual fund regulations.

The UTI ,utual -und) however) comes under the urview of ,utual-und #egulations and is registered with +5$I.

4ccording to e7erts) the division of the erstwhile UTI !4U, of#s.&6)*** crores as on ,arch 0***" couled with various mergers ofrivate sector funds) heralded a new chater in the story of the themutual fund industry.

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Fifth hase

-rom 0**( onwards) the mutual -und industryentered a hase ofconsolidation and growth with courtesy various mergers andacuisitions.

4cuisition of 4llianz ,utual -und schemes by $irla +un 8ife) in therecent ast is a case in oint.

4ccording to latest reorts) maor international fund houses such as-idelity want to strengthen their resence in India.

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