PHASE I – 1964 – 87

• Mutual Fund Industry started in India in 1963 with the formation of UTI
• Launch of First Scheme – US 64 – it was a very popular scheme, largely perceived as a debt fund with assured returns. However, it never had to declare its NAV and ran into problems in 1991, since then it has closed down. Government of India bought the units at a flat price – and enjoyed the boom that followed!
  

PHASE II – 1987 – 93 (Entry of Public Sector Funds)

• Establishment of State Bank of India MF – the first non UTI MF.
• Followed by Canbank MF, Life Insurance Corporation MF, Bank Of India MF.
• UTI still had leadership
• Position now slipping – UTI no longer the biggest fund, but has been the biggest supplier of manpower to the industry – many CEOs of new funds are ex-UTI.
  

PHASE III – 1993 –1996 – Entry of Private Sector Mutual Funds

• Entry of the Pvt. Sector funds in 1993
• Morgan Stanley, Templeton, Zurich, Alliance, Pioneer, Threadneedle, all entered India
• Many Indian houses started looking at this area of business
• Clients started becoming selective
  

PHASE IV – (SEBI Regulation for Mutual Funds) 1996

• SEBI -the regulatory authority
• UTI comes under SEBI regulation voluntarily
• Sebi regulations were enacted and implemented

Now there are about 42 mutual funds – from large ones like Reliance to tiny ones like Quantum mutual fund. However competition has not brought down the costs for the end customer!