What Are the Oldest Mutual Funds?

Over the past few decades, the concept of mutual funds has undergone a complete evolution, revolutionizing the way individuals invest their money. Millions of individuals use mutual funds to invest and see their money develop; they are regarded as the cornerstone of the financial industry.

However, how were mutual funds founded? Which mutual funds in India are the oldest? Let’s examine some of the earliest mutual funds in India and their effects on the stock market.

Oldest mutual funds meaning

In discussing the oldest mutual funds in India, the focus is on those specific mutual fund companies that have been in the business for the longest amount of time. However, these mutual fund companies have a long and illustrious history that spans several decades. They were among the industry pioneers in India.

Oldest mutual funds in India

1. MFS Massachusetts Investors

Morningstar claims that MFS Massachusetts Investors is the oldest small cap mutual fund in the United States, having only been around for three years after reaching its centennial. Since its establishment in 1924, the fund has weathered several periods of economic turbulence, including the Great Depression and the year 2008 Global Financial Crisis. 

Moreover, the company prioritizes longer time horizons, and under difficult market situations, it has placed a strong emphasis on capital protection. The fund still holds some of its original investments. This means of the 45 initial holdings, 35 are still in operation today in some capacity. A 9.22% Year-to-Date Return (YTD) has been achieved by the fund.

2. Pioneer Fund

The Pioneer Fund was established in 1928 and is considered to be the oldest equity mutual fund in India, still in existence today. It was initially known as the Pioneer Fund Inc., but it later changed its name to Pioneer Group Inc. The fund was founded by Philip L. Carret, a successful investor who believed in long-term investing and diversifying investments across multiple sectors.

3. SBI Magnum Equity ESG Fund

Under the name, SBI Magnum Equity ESG Fund, SBI Mutual Fund was introduced in 1991. However, environmental, social, and governance (ESG) values were intended to be advanced by the fund’s creation. It aspires to long-term capital appreciation by stressing these requirements. Moreover, ethical and sustainable investors who wish to align their investments with these principles are the target audience for the SBI Magnum Equity ESG Fund.

4. Birla Sun Life Frontline Equity Fund

Formerly known as the Birla Sun Life Frontline Equity Fund, one of the oldest mutual fund schemes in India was launched in 2002 by Aditya Birla Sun Life Mutual Fund. While relatively younger compared to some of its counterparts, it has quickly gained recognition for its consistent performance and prudent investment approach. 

The fund focuses on investing in blue-chip companies with strong fundamentals, aiming to deliver stable returns over the long term.

5. UTI Equity Fund

Established in 1964, the UTI or Unit Trust of India Equity Fund holds the distinction of being one of the oldest mutual unvestment in India. UTI played a pivotal role in popularizing mutual funds among Indian investors, offering them an avenue to invest in equities through a professionally managed fund. Over the years, UTI Equity Fund has delivered consistent returns to investors, cementing its position as a trusted investment option.

6. UTI Flexicap Fund

UTI, the oldest mutual fund in India is the manager of the active mutual fund known as UTI Flexicap Fund. In order to provide investors with the flexibility to make investments across a range of market capitalizations, the fund was founded in 1992. It provides growth prospects when risk is properly managed. The fund is a well-liked choice for individuals who want to navigate fluctuating market circumstances.

7. SBI Large and MidCap Fund

Founded in 1993, the SBI Large and Midcap fund is among the oldest mutual funds in India. This scheme establishes a diverse portfolio consisting mostly of large-cap and mid-cap companies with the purpose of providing investors with growth prospects. The fund seeks to balance risk and return by fusing the stability of well-established large-cap companies with the growth potential of up-and-coming mid-cap companies.

Investors can profit from various market conditions and economic cycles because of the diversified portfolio’s exposure to a wide range of industries. The fund management team finds businesses with promising growth prospects by doing thorough research and analysis.

The team conducts comprehensive assessments of possible investment possibilities’ financial performance, management competencies, and competitive advantages, with a focus on quality and sustainability. The goal of this stringent screening procedure is to guarantee that the fund’s portfolio contains only the most promising businesses.

How one can invest in mutual funds in India?

Step 1: Open an account on the investing platform of your choice.

Step 2: Ensure that you have a clear grasp of the investment objectives and risk tolerance. 

Step 3: Collect all the requisite paperwork, including identity and address verification, that will be needed to complete the KYC procedure successfully.

Step 4: Enter all necessary personal information, such as bank account and PAN information.

Step 5: To finish the investment process, transfer funds from the bank account to the investment account. 

Step 6: Based on your investing objectives and risk tolerance, choose the appropriate mutual fund category.

Step 7: After deciding on a certain fund category, it’s critical to evaluate and contrast other mutual funds that fall into that area. Take into account a number of variables, including the fund manager’s experience, the fund’s investment goal, and the expense ratio, among many others.

Step 8: Decide on an investment strategy. You have the option of making lump sum, quarterly, half-yearly, or monthly payments.

Step 9: Finish the process and decide how much you wish to invest.

Within a few days of placing your transaction successfully, your purchase history will be visible in your account.

The bottom line

Since their founding in 1774, mutual funds have seen significant development. The oldest mutual funds mentioned above are still in good standing and offer investors the chance to increase their wealth through long-term investing and diversification. 

However, these funds have withstood the test of time and serve as a reminder that investments can grow and generate profits for many years to come with the appropriate strategy. For a consistent source of income, whether you are an expert or novice investor, think about including mutual funds in your investment portfolio.

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