25 A FIRST PHASE 1964 87 Unit Trust of India was established on 1963 by an Act

25 a first phase 1964 87 unit trust of india was

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2.5. A) FIRST PHASE – 1964-87: Unit Trust of India was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 cores of assets under management. 2.5. B) SECOND PHASE – 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS): 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India and General Insurance Corporation of India. SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank Institute Of Management Development And Research Page 21
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of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989. 2.5. C) THIRD PHASE – 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS): With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 corers. The Unit Trust of India with Rs.44, 541 corers of assets under management was way ahead of other mutual funds. (Figure-3) Institute Of Management Development And Research Page 22
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2.6 STATEWISE CONTRIBUTION TO THE MUTUAL FUND INDUSTRY An analysis of state wise contribution to the total AUM of the mutual fund industry shows that Maharashtra contributed 44% or Rs. 5.34 lakh crore to the mutual fund industry as on March 2015, shows AMFI data. Of the Rs. 5.34 lakh crore, 73% or Rs. 3.91 lakh crore came from liquid and other debt funds while equity funds contributed Rs. 1.19 lakh crore. India’s financial capital Mumbai contributes 42% to the total AUM of the industry. Since a lot of companies have their headquarters in Mumbai, it makes a huge contribution to liquid funds AUM. After Maharashtra, New Delhi contributed Rs. 1.15 lakh crore or 10%, followed by Karnataka (7%), Goa (6%), West Bengal and other states at 5% each. The top eight states (see table below) contribute 85% to the industry’s total Rs. 12 lakh crore AUM as on March 2015. While most states recorded double digit percentage growth in the AUM, some states like Tripura, Arunachal Pradesh saw three digit percentage growth in AUM. States like Tripura, Arunachal Pradesh, Nagaland, Manipur and Sikkim recorded 357%, 213%, 182%, 176%, and 125% growth in AUM respectively.
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  • Fall '17
  • Mahvish ali

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