India’s Mutual Fund Companies

by Shakti Singh Dulawat on May 21, 2009

One of the most exciting periods of India is happening now. We are seeing India emerging as a force to be reckoned with, and the rest of the world is in awe of its growth and progress.

When Mutual Funds started in India, it was 1963. That was over 45 years ago, and since then it has grown from a barely recognized option to one that is preferred by many investors, especially the beginners and conservative ones.

At the start, there was only one company offering mutual funds, but this by the 1980s, this changed as several other mutual fund companies started to come in.

In the 1990s, new regulations were introduced which brought in more players, and eventually, some of these mutual find companies merged and the market started to gel into a strong force.

Today, there are about 33 companies offering mutual fund investments in India. Some of these are major international financial institutions such as ABN AMRO Mutual Fund which is managed by the Deutsche Bank A G, Birla Sun Life Mutual Fund which is the global Sun Life merged with India’s Aditya Birla Group.

HSBC and Standard Chartered are two large multinational companies which also offer mutual fund opportunities in India, and are names recognized the world over.

Morgan Stanley Mutual Fund in India is another global name in the industry, and is the leader in securities and investment management, as well as in credit card services. Morgan Stanley is one of the first to offer close-end mutual fund schemes for local retailers who want to maximize on appreciation of their long term capital.

Other mutual fund companies are Bank of Baroda, Housing Development Finance Corporation (HDFC), ING Vysya, Prudential ICICI, Sahara, State Bank of India, Tata, Kotak Mahindra, Unit Trust of India, Reliance, Franklin Templeton, Escorts, Alliance Capital, General Insurance Corporation (GIC), Benchmark, Canbank, Chola, and Life Insurance Corporation.

Many of these companies have been in business for at least a couple of decades, and their performance thus far has been strengthening the trust and confidence of the Indian market towards mutual funds investments.

At the rate of growth of this market in India, expectations are high that the current economic crisis that is hitting many countries today will not affect the Indian economy too much. With all the expertise and financial acumen of many Indian businessmen and women, it is really doubtful that the tide will turn the other way at all.

The beauty of mutual funds is its diversity and stability. It also has schemes that can accommodate any need which makes it ideal for developing investor confidence in India.

Quote of the Day:
The inherent volatility in the markets provides opportunities to make decent returns therein. This is how our Income fund has been able to perform well in recent times. – Mr. Ritesh Jain

Conclusion: Picking the right mutual fund company is more than knowing the name. You choose one also based on how they treat you from day one. With so many companies to choose from, you are at an advantage and you should use it to get the best fund manager possible. Remember, you need to get along with this manager 100%, and your vision should match his.

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