In a landmark moment for India’s financial sector, the State Bank of India (SBI) made history by becoming the first Indian bank to launch a mutual fund, with the establishment of SBI Mutual Fund.
This move marked the beginning of a new era in retail investment and wealth management, as mutual funds—previously limited to the Unit Trust of India—were now being offered by public sector banks. SBI’s entry into the mutual fund space provided Indian investors with greater access to professionally managed investment options, tailored to different risk profiles and financial goals.
“We are proud to lead the transformation of India’s investment landscape,” said an SBI spokesperson during the launch in 1987.
Initially offering debt- and equity-based schemes, SBI Mutual Fund has since grown to become one of India’s largest and most trusted Asset Management Companies (AMCs), managing funds across corporate, retail, and institutional segments.
- Bank: State Bank of India (SBI)
- Launched: July 1987
- Subsidiary: SBI Mutual Fund
- Milestone: First mutual fund launched by an Indian bank
- Legacy: Now one of India’s top AMCs with a diverse portfolio of funds
The success of SBI Mutual Fund set a benchmark for the Indian financial sector, encouraging other banks like ICICI Bank, HDFC Bank, and Kotak Mahindra Bank to launch their own mutual fund arms in the following years.
This bold initiative not only diversified SBI’s services but also helped democratize investing, enabling millions of Indians to participate in the capital markets.
