Business News: How Mutual Funds Sector Became Worth Rs 54 Lakh Cr Industry, Know Its History

Business News: Mutual Funds started in the year 1963 with the establishment of UTI, since then this industry has grown significantly. Today, the mutual funds industry is worth about Rs 54 lakh crore. In this video, we will learn about the history of mutual funds in India, how this industry became worth millions, how it gained people’s trust despite the risks, why it is the best way to invest in the low-risk and long-term, and many other interesting facts.

How Mutual Funds Started in India?

Mutual funds in India have been operating since 1963 when the Unit Trust of India (UTI) was established at the initiative of the Government of India and the Reserve Bank of India. UTI held a monopoly on the Indian mutual fund market until 1987, when public sector banks and financial institutions were permitted to enter, resulting in the formation of mutual fund subsidiaries by institutions such as the State Bank of India, Canara Bank, and Life Insurance Corporation of India. The real transformation began in the 1990s with the entry of private sector mutual funds, followed by the formation of the Securities and Exchange Board of India (SEBI) in 1992 to regulate the industry, ensure transparency, and protect investors’ interests.