Page 144 - Abhivruddhi

the same direction as well as in the same proportion at the same time.
Mutual fund issues units to the investors according to their investment
capacity, these investors of mutual funds are called as unit holders. In the
proportion of the investment made by investors they share profit /loss.
A mutual fund is required to be registered with Securities and Exchange
Board of India (SEBI).
In India the concept of mutual fund was introduced by Tiruvellore
Thattai .Krishnamachari, the then Finance Minister of India .On
the recommendation of Central enquiry and Shroff committees the
Government of India and Reserve Bank of India introduced the first
scheme Unit scheme 1964 through Unit Trust of India. The scheme. Since
1963 the mutual fund industry has witnessed phase wise development
through the entry of other financial institutions including banks and
non-banking finance companies, increase in variety of mutual funds,
in mutual fund industry and a radical shift from assured return to the
concept of Net Asset Value(NAV) .
The mutual fund industry has truly utilized the investment potential
of retail investor which is evident from the growth of this industry over
the period. It played key role in mobilizing the savings of small investors
and providing them an opportunity to gain from well diversified and
professionally managed portfolio. The impact of mutual fund industrial
growth is result of increase in number of asset management companies,
number of schemes, number of investors, and amount of fund invested in
mutual funds over the period.

Recent trends in Indian Mutual Fund Industry
The Mutual fund industry has experienced a radical progression
in the past twenty years. The growth in number of schemes and wide
spread across the varied industrial sector has given new dimension to
this industry. The well diversified portfolio of mutual funds has fascinated
investors by minimizing the risk and maximizing the return in the given
period, as the fund is professionally managed.
The Indian mutual funds industry added ₹6.70 trillion in 2021, a
record absolute asset gains for any calendar year on record. According
to the reports of global analytics company, CRISIL Ltd. in the year 2021,
assets under management (AUM) of fund houses in the Indian mutual
fund industry, excluding domestic fund of funds (FoF), surged to close at
a record ₹37.73 trillion.

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