Mutual funds and US
Massachusetts Investors Trust (now MFS Investment Management) was founded on March 21, 1924, and, after one year, it had 200 shareholders and $392,000 in assets. The entire industry, which included a few closed-end funds represented less than $10 million in 1924.
The Stock Market crash in the year 1929 hindered the growth of Mutual. US congress passed two Acts Securities Act of 1933 and Securities Exchange Act of 1934. The Law made it mandatory for all funds to be registered with Securities and Exchange Commission SEC. It also made mandatory that all investors are provided with Prospectus that will list the risk factor among all details. As of October 2007, there are 8,015 mutual funds that belong to the Investment Company Institute (ICI), a national trade association of investment companies in the United States, with combined assets of $12.356 trillion.
There are various types of mutual funds in America and Canada. They are Open end fund, Exchange traded funds, Equity Funds, Closed end funds etc
Mutual Funds in India and world
Meaning and objective of the Mutual Funds in India and America are the same. In some countries they are called Mutual funds, Some other countries it is Funds, Investment funds and collective funds etc.
Mutual funds came in to existence in India very late after the formation of UTI or Unit Trust of India by the Government of India and Reserve Bank of India at the year 1963. The first scheme of UTI was Unit scheme 1964. By the end of 1988 Unit Trust of India had nearly Rs6700 crores worth assets under its management.1987 marked a difference as the Government of India allowed SBI and other public sector institutions like LIC and GIC to issue Mutual funds. The year 1993 made it possible for private players to enter the Mutual Funds.The first Mutual Funds regulation comes in to existence this year. It was updated by Mutual Funds Regulations in 1996.
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