by Team Sharekhan
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Leaving no stone unturned in creating a one-stop shop for the latest from the world of Trading and Investments in our effort to Make the Markets work for YOU!
While the universe of funds nears 200 different options presently, there is interest in the history of mutual funds in India as the industry traces its origins way back to the 1960s.
This chronicle traces the evolution of the Indian MF industry and showcases some pathbreaking schemes that set the ball rolling. Understanding this legacy offers perspective on how far fund offerings have come while appreciating visionary products that showed retail investors the power of common pooled money decades back.
To track the oldest mutual funds still active presently, we need to go back to the roots of the investment vehicle in India. Some key milestones include:
As the industry evolved from a single-player nurturing market to hundreds of options today, some pioneering schemes led the way. For those interested in mutual fund history in India, let’s discover the surviving oldest mutual funds of India and their inspiring journey.
As India's first equity-oriented fund, the UTI Master Share Unit Scheme is symbolic of the country's capital market coming of age. Established on 15 October 1986 under the stewardship of industry doyen Reliance founder Shri. Dhirubhai Ambani, this fund celebrates 37 years of enriching investor wealth.
The SBI Mutual Fund itself is a veteran industry name launched just 6 years after UTI's dominance ended. Its flagship equity offering, the SBI Magnum Equity ESG scheme, is among the earliest schemes still serving investors for over 3 decades now.
Impressively, despite focusing its investments only on companies adhering to the best environmental, social and governance policies, the fund has offered approx. 16.5% CAGR returns over the past 31 years. This proves sustainable investing need not mean low rewards!
The Tata Mutual Fund has built its reputation on providing well-researched offerings backed by Tata Group's clout. When looking at the history of mutual fund, its flagship large and mid-cap fund has put its money where its mouth is from the start two decades back. This scheme wrote early chapters in the industry's evolution, delivering consistent returns across market cycles since inception.
With formidable 20-year returns of approx. 16.6% and top quartile performance among peers, this fund proves its Alpha-generating mettle across market cycles utilising trademark Tata group's research and ethics.
Besides the equity funds highlighted above, a few other veteran schemes include:
The schemes offer diversity across market segments while beating benchmarks and inflation handsomely after decades of operating. This underlines mutual funds' merit as an all-weather asset class.
NOTE: The financial performance of mutual funds can fluctuate due to various factors, so it's essential to refer to the latest data for investment decisions
The benefits of some of the oldest mutual funds still available to invest in India after decades of existence are multifold compared to newfangled schemes:
While past performance isn't indicative of future returns, the assurance that comes with a 20-30-year operational history across managers gives confidence to long-term investors.
The genesis of India's thriving mutual fund industry traces back over 3 decades when market access became easier courtesy of some pioneering fund houses like UTI and SBI. For those interested in mutual fund history, schemes such as Master Share Unit Trust enabled wealth creation from stock markets transparently at low charges. This pathbreaking solution marked the start of the industry democratising investments using professional management.
We care that your succeed
Leaving no stone unturned in creating a one-stop shop for the latest from the world of Trading and Investments in our effort to Make the Markets work for YOU!