The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched the Unit Trust of India (UTI). [1] Mutual funds are broadly categorised into three segments: equity funds, hybrid funds, and debt funds.
Mutual Fund Units Redeemed Data [3] [4] | ||
---|---|---|
Holding Period | Units redeemed in FY22 | Units redeemed in FY23 |
0 - 1 years | 56.83% | 50.11% |
1 – 2 years | 15.14% | 23.04% |
2 – 3 years | 5.03% | 9.81% |
3 – 5 years | 20.41% | 13.96% |
More than 5 years | 2.59% | 3.09% |
In April 2020, Franklin Templeton India unexpectedly wound up six credit funds with assets of close to $4 billion, citing a lack of liquidity amid the coronavirus pandemic. These funds had large exposure to higher-yielding, lower-rated credit securities. The Securities and Exchange Board of India (SEBI) conducted a probe into this sudden closure and found “serious lapses and violations”. As a result, in June 2021, SEBI barred Franklin Templeton Mutual Fund from launching any new debt schemes for two years. The regulator also ordered the fund house to refund investment and advisory fees, along with interest, of more than 5 billion rupees, and fined the global giant another 50 million rupees. [18] [19] [20] [21]
Franklin Templeton said it strongly disagreed with the SEBI’s order and planned to appeal against it. The decision to wind up the schemes “was taken with the sole objective of preserving value for unitholders”, a spokesperson said. However, the closure of these funds sparked panic withdrawals from other Franklin Templeton schemes as well as credit funds of other asset managers, leading to a storm on social media and court cases by distraught investors. [21] [18] [20]
Despite being available in the market, [22] a recent report on Mutual Fund Investments in India published by research and analytics firm, Boston Analytics, suggests investors are holding back from putting their money into mutual funds due to their perceived high risk and a lack of information on how mutual funds work. [23] There are 46 Mutual Funds as of June 2013. [24] In 2019, Asset under management (AUM) of the mutual fund industry rose by 13% to 24 trillion in 2018 by November [25] The total assets under management (AUM) has surged by around 23.43% in 2023. The Assets base in January 2023 was Rs.40.70lakh crores, which rose to Rs.50.24 lakh crore in Nov, 23. [26]
Assets under management (AUM) is a financial term denoting the market value of all the funds being managed by a financial institution (a mutual fund, hedge fund, private equity firm, venture capital firm, or brokerage house) on behalf of its clients, investors, partners, depositors, etc.
The average assets under management of all mutual funds in India for the quarter Dec 2015 to Mar 2016(in ₹ Lakh) is given below: [27] [28] or [29]
Seller | Acquired By | Year |
---|---|---|
Pioneer ITI MF | Franklin Templeton | 2002 |
Zurich India AMC | HDFC MF | 2003 |
Alliance Capital MF | Birla Sunlife | 2005 |
Standard Chartered | IDFC | 2008 |
AIG Global Investment Group MF | PineBridge MF | 2011 |
Benchmark Mutual Fund | Goldman Sachs | 2011 |
Fidelity | L&T Finance | 2012 |
Morgan Stanley's MF | HDFC MF | 2013 |
PineBridge MF | Kotak MF | 2014 |
ING Mutual Fund | Birla Sunlife | 2014 |
Daiwa AMC | SBI MF | 2013 |
Goldman Sachs | Reliance MF | 2015 |
Deutsche | Pramerica | 2015 |
JP Morgan | Edelweiss | 2016 |
Peerless | Essel | 2017 |
Escorts | Quant | 2018 |
Religare Invesco | Invesco AMC | 2018 |
Reliance MF | [30] | Nippon India2019 |
Principal | Sundaram | 2021 |
Essel | Navi MF | 2021 |
L&T Asset Management Company | HSBC Global Asset Management Company | 2022 |
IDFC Asset Management Company | Bandhan Financial Holdings Limited | 2023 |
India Bulls Asset Management Company | Groww MF | 2023 |
IDBI Asset Management Company | LIC Nomura Mutual Fund Asset Management Company | 2023 |
BSE Limited, also known as the Bombay Stock Exchange (BSE), is an Indian stock exchange which is located on Dalal Street, known as the Wall Street of Mumbai, in turn described as the New York of India. Established in 1875 by cotton merchant Premchand Roychand, it is the oldest stock exchange in Asia, and also the tenth oldest in the world. The BSE is the world's 8th largest stock exchange with a market capitalization exceeding US$4.5 trillion as of January 2024.
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