The mutual fund industry in India has come a long way since the formation of Unit Trust of India way back in 1963. During these past 40 years the industry has seen many significant structural changes. It has gone through testing times as its largest player UTI had to be bailed out by the government twice. It has also seen bifurcation of UTI, entry of private sector players which helped expand the market further, periods of outstanding performances aided by strong bull runs in the late 1990s, which saw stock prices shooting through the roof, as well as the current bullish fervor, which has helped equity-oriented funds deliver substantial returns. Debt funds too have been benefitted by the soft bias in the interest rates. The volatility in the bond prices has helpedlast but not the least, customer service. UTI’s inception and the beginning of the journey.
This was for the first time ever that investors came to know about the concept of mutual funds as an investment vehicle. Unit-64 (US-64), which was launched in 1964 by UTI, became the first mutual fund scheme to be launched in the country. US-64 became a huge success and made UTI a household name. According to the Association of Mutual Funds in India (AMFI), the period between 1964 and 1987 represents the first phase in the evolution of the mutual fund industry in India. During this period, UTI remained the only player in the industry.

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