Growth of Mutual Fund Industry in India

In the late 1990s, the mutual fund industry was a very different place. UTI was the dominant player with its US-64 scheme, and the concept of SIP barely existed. The key phases of industry evolution are as follows: Phase 1 (1963-1987) — The UTI Era: Parliament established UTI in 1963 under the UTI Act. For 24 years, UTI was the sole mutual fund in India. It launched the iconic US-64 scheme and built the foundation of trust in pooled investments. Phase 2 (1987-1993) — Public Sector Entry: The government allowed public sector banks and institutions to set up mutual funds. SBI Mutual Fund (1987), Canbank MF (1987), LIC MF (1989), and Indian Bank MF launched during this period. Phase 3 (1993-2003) — Private Sector & SEBI: SEBI introduced the Mutual Fund Regulations in 1993, opening the doors for private sector and foreign players. Kothari Pioneer (now Franklin Templeton) became the first private sector AMC. HDFC MF, ICICI Prudential, and others followed. Competition increased, costs came down, and innovation began. Phase 4 (2003-Present) — Growth & Modernization: UTI was restructured in 2003. Direct plans launched in 2013. SEBI's mutual fund categorization in 2017 simplified the product landscape. The SIP revolution post-2015 brought in crores of retail investors. Digital platforms, instant redemption, and seamless KYC transformed the investor experience. By early 2026, AUM has crossed ₹82 lakh crore with over 27 crore folios and 10+ crore SIP accounts.