Historical Background and Growth Trends of Mutual Funds in India

The main purpose of this paper is to present mutual funds historical background and growth trends in Indian mutual funds. The paper is purely based on secondary data collected from SEBI bulletins, mutual funds websites and previous research articles. The evolution of mutual fund industry in India is shows in phase wise developments from 1964 to till date. Growth trends in mutual funds industry in India is based on the gross mobilization from 2001-02 to 2016-17, scheme wise fund mobilization from 2002-03 to 2016-17, scheme wise resource mobilization from 2011-12 to 2016-17 and the paper also discusses in a nutshell the differences between mutal funds and banks. The analysis shows that The Indian Mutual Fund Industry has recorded Rs. 13,460 billion Assets under Management (AUM) by December 2015 and is reporting a steady growth till date, total gross mobilization in terms of crores has increased from Rs.1,64,523 in 2011-02 to Rs.1,76,15,549, net scheme wise resource mobilization has increased from (Rs 22,024) mn in 2011-12 to Rs.3,43.049 mn in 2016-17.