India’s journey into the world of organized investment began with the establishment of the Unit Trust of India (UTI) in 1963, marking the launch of the country’s first domestic mutual fund. Created under an Act of Parliament by the Government of India in collaboration with the Reserve Bank of India (RBI), UTI became the pioneer of mutual fund investments in India.
The trust’s debut product, the Unit Scheme 1964 (US-64), revolutionized savings and investments for millions of Indians. Designed as a vehicle for small investors, the scheme gained widespread popularity and remained a flagship offering for decades.
“UTI wasn’t just a financial institution — it was a movement that introduced India to the power of collective investment,” remarked a senior financial analyst.
- Institution: Unit Trust of India (UTI)
- Founded: 1963
- First Mutual Fund Scheme: Unit Scheme 1964 (US-64)
- Founding Authorities: Government of India & Reserve Bank of India
- Impact: Paved the way for the mutual fund industry in India
UTI held a monopoly in the mutual fund space until the late 1980s, when public sector banks and financial institutions began launching their own schemes. The liberalization of the Indian economy in the 1990s further opened the sector to private and foreign players, transforming mutual funds into a key pillar of retail investment.
Today, the mutual fund industry boasts over ₹50 lakh crore in assets under management, and it all began with the visionary launch of UTI six decades ago.
