From Wikipedia, the free encyclopedia
The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched the Unit Trust of India (UTI). Mutual funds in India are broadly categorised into equity funds, hybrid funds and debt funds.
Key statistics (examples taken from public reports and industry releases):
Holding period and percentage of units redeemed (FY22 / FY23):
| Holding period | Units redeemed in FY22 | Units redeemed in FY23 |
|---|---|---|
| 0 – 1 years | 56.83% | 50.11% |
| 1 – 2 years | 15.14% | 23.04% |
| 2 – 3 years | 5.03% | 9.81% |
| 3 – 5 years | 20.41% | 13.96% |
| More than 5 years | 2.59% | 3.09% |
Breakdown of AUM by broad categories (representative figures from industry reports):
Over the years, the Indian mutual fund industry has experienced several controversies related to credit events, liquidity stresses, governance issues and regulatory actions. The following list summarises several major episodes and fund-level issues.
In April 2020, Franklin Templeton India wound up six credit funds with combined assets of close to US$4 billion, citing liquidity issues during the COVID-19 pandemic. SEBI conducted inquiries and later imposed restrictions on new debt schemes for the fund house for a period.[7][8]
In 2019, several debt schemes managed by Reliance Mutual Fund experienced liquidity stress and heavy redemptions owing to exposure to troubled corporates such as DHFL and others.[9]
The IL&FS defaults in 2018 had wide repercussions on debt funds that held infrastructure-related securities; many funds marked down NAVs and faced redemption pressures.[10]
Defaults by Amtek Auto led to significant troubles in certain debt portfolios; some fund houses suspended redemptions temporarily to manage liquidity.[11]
Unit Trust of India (UTI) faced a major crisis in 2001 due to redemption pressures and legacy mismanagement; the government intervened and UTI was restructured in subsequent years.[12]
Defaults by DHFL resulted in large markdowns for funds exposed to DHFL debt; regulatory scrutiny and downgrades followed.[13]
The Yes Bank moratorium and stress in 2019–20 produced write-downs across schemes holding Yes Bank securities, leading to losses for several schemes and fund houses.[14]
Kotak faced issues around fixed maturity plans and FMP redemptions tied to exposures in certain corporates; SEBI took regulatory action in some areas.[15]
HDFC faced pressure in some debt schemes during credit events linked to certain large corporate groups, and later took steps to recover positions as markets normalized.[16]
Sahara’s mutual fund group faced compliance issues and SEBI action in the past; some schemes were ordered to be wound up due to regulatory non-compliance.[17]
Mutual funds operate across various market segments including equity, debt, hybrid, liquid and exchange-traded funds (ETFs). The industry consists of Asset Management Companies (AMCs) regulated by SEBI.
Assets under management (AUM) represents the market value of assets managed by mutual funds. The industry's AUM figures are regularly published by industry bodies and regulators.
Representative quarterly/annual AUM figures are available from industry sources and SEBI reports.[1][4]
Several mutual funds and AMCs have been involved in acquisitions, mergers and changes of ownership over the decades. The table below shows a shortlist of notable acquisitions (representative examples).
| Seller / AMC | Acquired by | Year |
|---|---|---|
| Company A (example) | Acquirer X | 2011 |
| Company B (example) | Acquirer Y | 2015 |
| Company C (example) | Acquirer Z | 2019 |
(Note: for a fully accurate and complete acquisitions list consult the original Wikipedia article and the references linked there.)