The joint initiative by the Government of India and the Reserve Bank of India led to the formation of Unit Trust of India (UTI) in the year 1963. The primary objective was to encourage and pool the savings of the middle and lower-income groups and to enable them to share the benefits and prosperity of the industrial development in the country.
The History of Mutual Funds can be divided into four different phases, they are as follows:
a. Phase I (1964-1987):
b. Phase II (1987-1993):
c. Phase III (1993-2003):
d. Phase IV (2003-2014):
e. Phase V (2014-Present):
In 2018, SEBI asked fund houses to benchmark returns of Equity schemes against a Total Returns Index (TRI) and also introduced categorization and rationalization of mutual fund schemes making it simpler for investors to understand.