BANKING AFFAIRS

Detailed explanation-1: -The first mutual fund scheme that was introduced in India by UTI was in the Unit Scheme (1964). UTI had Assets Under Management worth Rs. 6, 700 Crores, by the end of the year 1988. In 1987, public sector enterprises such as State Bank of India, Punjab National Bank, Canara Bank, etc.

Detailed explanation-2: -SBI Mutual Fund was the first ‘non-UTI’ mutual fund established in June 1987, followed by Canbank Mutual Fund (Dec. 1987), Punjab National Bank Mutual Fund (Aug. 1989), Indian Bank Mutual Fund (Nov 1989), Bank of India (Jun 1990), Bank of Baroda Mutual Fund (Oct. 1992).

Detailed explanation-3: -The first mutual funds to be started in India was in 1963, when Unit Trust of India (UTI) was formed jointly by Government of India and the Reserve Bank of India.

Detailed explanation-4: -The modern mutual fund that we know today first appeared in Boston in 1924 with the introduction of the Massachusetts Investors’ Trust, which was the first mutual fund with an open-end capitalization, allowing the fund to continuously issue and redeem its shares.

Detailed explanation-5: -Oldest Mutual Funds in India: The Indian mutual fund industry kickstarted in 1963 with the Unit Trust of India (UTI). The initial scheme launched by the Unit Trust of India with an initial capital of INR 5 crore.