concept of mutual funds

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.

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


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



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.