Abstract the challenges which the mutual fund industry had to face are low customer awareness and financial literary pose which act as the biggest challenge to channelize the household savings into mutual funds. The mutual fund industry in india started in 1963 with the formation of unit trust of india, at the initiative of the government of india and reserve bank of india significant growth in size of mutual fund industry was seen in late 1980's when public sector mutual funds were given permission. In this context, it becomes pertinent to study the recent trends of the indian mutual fund industry 11 the most important trend in the mutual fund industry is the aggressive expansion of the foreign.
Mutual funds industry in india has emerged as one of the major constituents of indian financial system it has completed more than forty five years of its presence. There is an opportunity for the mutual fund industry to morph itself into a broader asset management industry this will bring in additional investors and flows as the product basket will offer a holistic array of products with myriad combinations of risk-reward, attracting different classes of investors. Mutual fund industry through a round table discussion with leading industry leaders and view some of its challenges and opportunities from an academic point of view. Sbi mutual fund was later found by canbank mutual fund, lic mutual fund, indian bank muatual fund, bank of india mutual fund, gic mutual fund and pnb mutual fund by 1993, the assets under management of the industry increased seven times to rs 47,004 crores.
This article presents an overview of the mutual fund industry in india and the reasons for its poor penetration, which includes lack of objective research it benchmarks the industry globally, and. During last one decade or so, role of indian mutual fund industry as a significant financial service in financial market has really been noteworthy in fact, mutual funds have important segment of financial market of india, especially as a result of the initiatives taken by govt of india for resolving problems relating to uti's us-64 and. Indian mutual fund industry: emerging opportunities and challenges the mutual fund summit, under the aegis of cii is intended as a conclave of industry players, regulators and policy makers and industry associations. Going forward, the industry will have to make the most of the opportunities coming its way and at the same time tackle the challenges that will keep emerging every now and then over the last 42 years that have passed since the first mutual fund (mf) was launched, the indian mutual fund industry has come a long way. Now the time has come for the mutual fund industry to address the problem of size and its impact on the investors mutual fund is comparatively a new entity in the financial market.
Indian mutual fund industry: the road ahead 13 while the average aum to gdp ratio stands at 7% for india and is considerably lower than the global figure, there is a wide variation across the different districts. The mutual fund industry in india began in 1963 with the formation of the unit trust of india (uti) as an initiative of the government of india and the reserve bank of india much later, in 1987. There are many challenges facing mutual funds which is of prime concern to the people who have an investment spreepeople find mutual fund investment so much interesting because they think they can gain high rate of return by diversifying their investment and risk. The indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector as of august 2013, the total aum stood at rs 766 trillion however, growth rates of amcs have come down from the peak levels seen in the early 2000s. 4 1 executive summary 1 the indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector.
Mutual fund in industry is facing, the fund houses require an aggressive mutual fund marketing strategy over the period the indian savings market has been expanding and. Mutual fund industry increased significantly as locations (the top fifteen cities in india are marked as t15 for mutual fund investors - so if you're in these cities, your compared to 1128 trillion in december 2014. The challenges which the mutual fund industry had to face are low customer awareness and financial literary pose which act as the biggest challenge to channelize the household savings into mutual funds.
The mutual fund (mf) industry in india has seen rapid growth in assets under management (aum) total aum of the industry stood at rs 252 trillion (us$ 3759 billion) between april - august 2018 at the same time the number of mutual fund (mf) equity portfolios reached a high of 746 million as of june 2018. Data analysis of a mutual fund 1076 words | 5 pages of this paper is to analyze the performance of a mutual fund by applying statistical tools and secondary research on the previous ten years' annual returns of the fund and coming up with a conclusion based on the results of the findings. The mutual dependence of insurance and capital markets can play a powerful role in channeling funds and investment expertise to support the development of the indian economy.
The mutual fund industry in india started in 1963 with the formation of unit trust of india, at the initiative of the government of india and reserve bank of india. Aml in the industry - a background sebi cilircular in 2006 mandddated all idiiintermediaries including mutual funds to formulate and implement a. The fee structure in the indian mutual fund industry enjoys little flexibility unlike developed markets where the level of management fees depend on a variety of factors such as the investment objective of the fund, fund assets, fund performance, the nature and number of services that a fund offers.