The idea of mutual funds in India first emerged in the year 1963. In between the years, 1963 and 1987, it marked the survival of a single mutual fund Company in the country with an asset of Rs.67bn under the management of AUM. And by the end of 80s decade, many other mutual fund companies took their place in this mutual fund market. Some of the new entrants in mutual fund business in India are Indian Bank Mutual Fund, SBI Mutual Fund, Bank of India Mutual Fund, Punjab National Bank Mutual Fund, Canbank Mutual Fund.

Major Mutual Fund Companies in India

State Bank of India Mutual Fund – This mutual fund company is the very first Bank sponsored firm to launch offshore fund and the India Magnum Fund. The company holds the popular name as the largest bank sponsored Mutual fund firm in the country today.

LIC Mutual Fund – LIC Mutual Fund was setup by the LIC in the year 1989. It has contributed about Rs.2 crores to the corpus of the fund.

Bank of Baroda Mutual Fund (BOB Mutual Fund) – The BOB mutual fund was founded on 30th October 1992 and it was started by the Bank of Baroda.

Canbank Mutual Fund – This mutual fund company was established in the year 1987 with Canara Bank as its sponsor. The AMC of Canbank Mutual fund was setup in 1992 with its corporate office in Mumbai.

ABN AMRO Mutual Fund – The ABN AMRO was established as a Trustee company in India in the year 2004 by the ABN AMRO Trustee Private Limited.

Alliance Capital Mutual Fund – The Company was set up by the Alliance Capital Management Corporation and was set up in the year 1994 with its corporate office in Mumbai.

Benchmark Mutual Fund – The Benchmark Mutual Fund was organized in the year 2001 with the sponsorship of Niche Finance Private Limited and Benchmark Trustee Company Private Limited as the Trustee Company.

Birla Sun Life Mutual Fund – This firm is a joint venture of the Aditya Birla group and the Sun Life Financial. The company follows a long term investment approach. The Sun Life Financial is a global firm which started in the year 1871.

Chola Mutual Fund – The Company was promoted by Cholamandalam Investment and Finance Company Limited and was founded in the year 1997.

Escorts Mutual Fund – Excorts Finance Limited promoted this Mutual Fund Company and setup in the year 1996. The company’s AMC was incorporated in the year 1995.

Franklin Templeton India Mutual Fund – Franklin Templeton Investments is one of the prime financial groups in the world. The company offers many mutual fund schemes for the investors.

GIC Mutual Fund – This Company is the sponsorship of General Insurance Corporation of India and is a Central government undertaking company.

HDFC Mutual Fund – HDFC mutual fund was setup by two investors, HDFC and Standard Life Investments Limited, in the year 2000.

HSBC Mutual Fund – With the sponsorship of HSBC securities and Capital Markets Private Limited, the HSBC Mutual fund was started in the year 2002.

The other companies in the Mutual Fund sector includes

• ING Vysya Mutual Fund
• Kotak Mahindra Mutual Fund
• Morgan Stanley Mutual Fund India
• Reliance Mutual Fund
• Prudential ICICI Mutual Fund
• Standard Chartered Mutual Fund
• Sahara Mutual Fund
• Tata Mutual Fund
• Unit Trust of India Mutual Fund

From the above list, there are some Mutual fund companies which stand apart for the popularity and the services and schemes provided by them. They are State Bank of India Mutual Fund, BOB Mutual Fund, Birla Sun Life Mutual Fund, LIC Mutual Fund and Canbank Mutual Fund.