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Evolution of Mutual Funds in India: Top fund delivered over 18% annualized returns, Check key funds and their returns
4 min read | Updated on May 16, 2024, 12:16 IST
SUMMARY
Mutual funds have gained immense popularity in recent years, but their origins date back over three decades. Explore the history of mutual funds in India and learn about the country's oldest funds. Discover their equity exposures and legacies. Franklin's midcap fund, established in 1993, has achieved over 20,000% returns.
Inside the Top 5 Oldest Mutual Funds Performance; Top fund delivered 22,912% returns
Mutual funds have become quite popular lately, but the roots of this trend were planted a long time ago (almost over 3 decades). Let's take a look at the history of mutual funds, focusing on the old funds that primarily invest in domestic equities and their performance.
History of the Mutual Fund Industry
The mutual fund industry in India began in 1963 with the establishment of UTI by an Act of Parliament. Initially, UTI operated under the regulatory and administrative control of the Reserve Bank of India.
In 1978, UTI became independent from the RBI, and the Industrial Development Bank of India took over regulatory and administrative control. The first scheme launched by UTI was the Unit Scheme in 1964. By the end of 1988, UTI had ₹6,700 crore of Assets Under Management.
Fast forward to today, as of 15 May 2024, the Mutual Fund Industry has an AUM of ₹57.25 lakh crore.
What are the oldest mutual funds in India?
Mutual fund companies that have been in the market and are still continuing their operations for the longest period. In the Indian mutual fund industry, these funds were among the pioneers.
Oldest Mutual Fund Schemes
| Fund Name | Category | Date Of Inception |
|---|---|---|
| UTI Mastershare Unit Scheme – IDCW | Equity Large Cap | 01-06-1989 |
| SBI Magnum Equity ESG Fund | Equity: Thematic-ESG | 01-01-1991 |
| UTI Flexi Cap Fund (G) | Equity - Flexi Cap | 18-05-1992 |
| Franklin India Prima Fund (G) | Equity: Mid-Cap | 01-12-1993 |
| Franklin India Bluechip Fund (G) | Equity: Large Cap | 01-12-1993 |
| SBI Large & Mid Cap Fund (D) | Equity: Large & MidCap | 31-03-1997 |
| Tata Large & Mid Cap Fund | Equity: Large & MidCap | 31-03-2003 |
Top 5 among performance
| Fund Name | Category Average (%) | Current Value of Rs 10,000 invested since inception | Absolute Returns (%) | Annualised Returns (%) | Date Of Inception |
|---|---|---|---|---|---|
| Franklin India Prima Fund (G) | 21.00 | 2,301,280.00 | 22,912.80 | 19.17 | 01/12/1993 |
| UTI Mastershare Unit Scheme – IDCW | 15.31 | 682,188.10 | 6,721.88 | 12.83 | 01/06/1989 |
| Tata Large & Mid Cap Fund (G) | 16.25 | 625,795.90 | 6,257.96 | 21.7 | 31/03/2003 |
| UTI Flexi Cap Fund – IDCW | 18.01 | 386,300.00 | 3,763.00 | 12.51 | 18/05/1992 |
| SBI Magnum Equity ESG Fund | 17.82 | 211,355.50 | 2,013.55 | 9.57 | 01/01/19 |
Franklin India Prima Fund (G)
The fund was launched in 1993 and falls under the equity midcap category. It is primarily invested (98.33%) in domestic equities. Being a mid-cap-oriented fund, it has exposure to mid-cap stocks at 49.47%, with 8.45% and 16.04% exposure to large caps and small caps, respectively.
UTI Large Cap Fund (Formerly- UTI Mastershare Unit Scheme)
The fund, launched in 1989, falls under the equity large-cap category and is primarily invested (97.46%) in domestic equities. As a large-cap fund, it allocates 70.91% to large-cap stocks, with 9.76% and 1% allocated to mid-cap and small-cap stocks, respectively.
Tata Large & Mid Cap Fund (G)
The fund, launched in 2003, falls under the equity large and midcap category and has 93.72% exposure to domestic equities. With a focus on large and midcap stocks, it allocates 34.95% and 32.81% to large and midcap stocks, respectively, and 8.2% towards small-cap stocks.
UTI Flexi Cap Fund – IDCW
The fund, launched in 1992, falls under the equity flexicap category and has a 95.73% exposure to domestic equities. As a flexicap fund, it exhibits lower volatility and holds a significant portion of its assets in large-cap and midcap stocks, with allocations of 81.71%, 17.21%, and 1.07% to large caps, midcaps, and small caps, respectively.
SBI ESG Exclusionary Strategy Fund
The fund, launched in 1991, falls under the equity thematic-ESG category. It primarily allocates its equity exposure to large-cap stocks (60.05%), with 12.7% and 4.34% allocated to midcap and small-cap stocks, respectively.
These mutual funds were introduced in India during the initial stages of the mutual fund industry. As these funds have survived through different market phases or cycles and managed their investments efficiently, they are a good performer subject to study market trends.
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