| Pub. Date | : Jan, 2023 |
|---|---|
| Product Name | : The IUP Journal of Applied Economics |
| Product Type | : Article |
| Product Code | : IJAE050423 |
| Author Name | : Munawar Sayyad, Kaushik Bhattacharjee and Satish D |
| Availability | : YES |
| Subject/Domain | : Economics |
| Download Format | : PDF Format |
| No. of Pages | : 06 |
The first instance of mutual funds was noted in the Dutch Republic during the 1772-73 financial crisis. The United Kingdom had its first investment trust in 1868 and flourished in the 1880s. However, the United States is considered as the country of 'origin' and 'development' of mutual funds. In US, mutual funds were introduced in the 1890s. They played a vital role in its economy, especially in capital market development.
In India, the entry of mutual funds as a financial product happened relatively late dating back to 1963 when the Unit Trust of India (UTI) started the mutual fund business. Since then, the Indian mutual fund industry has grown manifold, be it in size, schemes, or subscriptions. This growth has been over several phases-the phase of the introduction of other public sector mutual funds, followed by the phase of the appearance of private sector mutual funds-thanks to the policy of opening up the economy by the Indian government since 1991. It is projected that Average Assets Under Management (AAUM) will grow at 12.7% annually, with AAUM reaching 57.2 tn by 2026 and 91.5 tn by 2030.1 Hence, mutual funds are assuming increasing importance in the Indian financial system and have the potential to continue as a critical part of the Indian economy.