The concept of mutual fund is gradually becoming popular in India. However the industry is still in its nascent stage . People are ignorant about the benefits of mutual fund investment and they tend to confuse mutual funds with equity investments.
The blog post has been undertaken to study the concepts of mutual funds, to trace the growth and performance of mutual fund industry, to know the advantages of mutual fund investments, how to select the appropriate fund and to know the difference between mutual fund investments and other investment options ( like fixed deposits, bank deposits, equity etc.)
Mutual Fund started by Unit Trust of India (UTI) which was established in 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs. 6,700 crores of assets under management and in 2018 assets under Management of Mutual Fund house has been increased to 2431131 crores , with this mamouth increase in AUM we can analyse that the importance and popularity of Mutual Funds nowadays.
| YEAR | AMOUNT | AMOUNT INCREASE IN AUM(CRORE) | % INCREASE IN AUM |
| 1988 | 6700 | 0 | 0 |
| 1993 | 47004 | 40304 | 601.55% |
| 2003 | 121805 | 74801 | 159.14% |
| 2004 | 139616 | 17811 | 14.62% |
| 2007 | 359097 | 219481 | 157.20% |
| 2010 | 747525 | 388428 | 108.17% |
| 2013 | 816657 | 69132 | 9.25% |
| 2016 | 1353443 | 536786 | 65.73% |
| 2018 | 2431131 | 1077688 | 79.63% |
Mutual Funds nowadays are considered the most preferred option for investment in India because mutual funds are professionally managed, diversified, economics of scale, simplicity and liquidity.
Mutual Funds are easy to buy and sell , you can either buy them directly from the fund house or through 3rd party (AMFI Certified Brokers).Before investing in any mutual fund one should consider the few factors like objective,risk , fund manager, scheme track record and cost factor.
Today there are 44 Fund house are presently dealing in Mutual Funds in India, Each Fund house have several scheme where investors can invest according to their income, risk taking capacity, time frame.
1) BOI AXA Investment Managers Private Limited
2) Canara Robeco Asset Management Company Limited
3) SBI Funds Management Private Limited
4) Union Asset Management Company Private Limited (formerly Union KBC Asset Management Co. Pvt. Ltd)
5) Baroda Pioneer Asset Management Company Limited
6) IDBI Asset Management Ltd.
7) UTI Asset Management Company Ltd
8) IIFCL Asset Management Co. Ltd.
9) LIC Mutual Fund Asset Management Limited
10) DSP Investment Managers Private Limited
11) Edelweiss Asset Management Limited
12) Essel Finance AMC Limited
13) IDFC Asset Management Company Limited
14) IIFL Asset Management Ltd. (Formerly known as India Infoline Asset Management Co. Ltd.)
15) IL&FS Infra Asset Management Limited (CIN U65191MH2013PLC239438)
16) Indiabulls Asset Management Company Ltd.
17) ITI Asset Management Limited
18) JM Financial Asset Management Limited
19) Kotak Mahindra Asset Management Company Limited(KMAMCL)
19) L&T Investment Management Limited
20) Mahindra Asset Management Company Pvt. Ltd.
21) Motilal Oswal Asset Management Company Limited
22) PPFAS Asset Management Pvt. Ltd.
23) Quant Money Managers Limited
24) Quantum Asset Management Company Private Limited
25) Sahara Asset Management Company Private Limited
26) Shriram Asset Management Co. Ltd.
27) SREI Mutual Fund Asset Management Pvt. Ltd.
28) Sundaram Asset Management Company Limited
29) Tata Asset Management Limited
30) Taurus Asset Management Company Limited
31) BNP Paribas Asset Management India Private Limited
32) Franklin Templeton Asset Management (India) Private Limited
33) Invesco Asset Management (India) Private Limited
34) Mirae Asset Global Investments (India) Pvt. Ltd.
35) Principal Asset Management Pvt. Ltd.
36) Joint Ventures – Predominantly Indian
37) Aditya Birla Sun Life AMC Limited
38) Axis Asset Management Company Ltd.
39) HDFC Asset Management Company Limited (Corporate Identification Number – U65991MH1999PLC123027)
40) ICICI Prudential Asset Management Company Limited
41) Reliance Nippon Life Asset Management Limited
42) Joint Ventures – Predominantly Foreign
43) HSBC Asset Management (India) Private Ltd.
44) DHFL Pramerica Asset Managers Private Limited
Contents
Chapter 1: Concepts and types of mutual funds
Chapter 2: Performance & growth of mutual funds in India
Chapter 3: Advantages of Mutual fund investments
Chapter 4: Determining investment appetite
Chapter 5: Association of Mutual Fund in India (AMFI)
Chapter 6: Mutual funds vs. other investments options
Chapter 7: How to select a mutual fund?
Chapter 8: Future of Mutual fund in India
Conclusion
Disclaimer
Mutual Fund investments will be subject to market risks. Any mutual fund listed in the document does not guarantee fund performance or its underlying creditworthiness. Do read the mutual fund document thoroughly before investing. Specific investment needs and other factors have to be taken into account while designing a mutual fund portfolio.
Mutual Funds are linked to market risk otherwise, good option to invest
Thanks for this useful information.
We too have invested in mutual funds butbnevwe nea the depth of it. The article os very comprehensive and useful. I’ll make my husband reafvthis article and it can add some benifit tonour portfolio…
Thanks priyanka for sharing
WE too have investes in.mutual funds but never new the deoth if it….article is very comprehensive…I’ll maje my husband read this… it might can add value to our portfolio…
Thank you for the in depth knowledge about mutual funds. That’s really good piece of information n will help me for sure.
Quite informative , I have been investing in mutual funds from a long time and what I feel is that they are quite safe if you have done your own fundamental and technical analysis .
I always thought to invest in MF but then leave it due to doubts and bit fear. Thankfully, your post made my many doubts cleared.
Recently we started investing in mutual fund but didn’t know about this in such deep. I will save this page and will make my husband also read. Very much helpful to us.. thanks for sharing dear.
I have invested in mutual funds in the past and I totally trust this form of financial investment. Thanks for sharing such a detailed post about this.
Amazing and informative post. Mutual fund investments are probably according to personal income, risk taking capacity, time frame. Great thoughts.
I am really looking forward to reading this series, since I have no background in finance. The knowledge will come handy as I’m considering investing soon.
Due to the lack of indepth knowledge about mutual funds i have always shied away and opted for the more traditional ways of savings. Thanks for this post
I had been thinking of making some lobg term investments and was certainly looking at Mutual Funds for the same. Will be refering to this article while putting my plan into action. Thanks.
This was a topic that needed an in-depth explanation about it & I’m glad that you took the initiative to explain it us.
A wise person will understand how necessary it is to invest for a secured future.
I always had my doubts about investing in Mutual funds. Thanks for sharing such in depth knowledge on this. This is gonna definitely be on one of my reference sites.
Thank you for undertaking this research and sharing with your readers. Mutual Funds are my chosen form of investment due to their easy and relatively risk-free nature.
Mutual funds are a good investment option. Especially so if you are interested in investing in the stock market but do not have the time or the knowledge to study the market and invest.
Great post-Priyanka, Mutual Funds are my first choice for savings. Though it depends on the risk-taking the ability of each individual
This is useful information, thanks for sharing the crucial details like investment options and their right means for contacts.
I always think mutual fund is a risky way of investment but after reading the whole concept in detain ,now i am quite sure about it. thanks for sharing the informative post..
Very informative post on mutual funds I didn’t knew this many of exist