Oldest Mutual Funds in India: Which Came First and What Happened to It 

Key Takeaways 

• Unit Trust of India (UTI) is the oldest mutual funds institution in India, established in 1963 under the Unit Trust of India Act. 

• Unit Scheme 1964 (US-64) was India’s first mutual fund scheme, launched by UTI in 1964, but it is no longer operational. 

• UTI Mastershare Unit Scheme, launched in 1986, is among the oldest mutual fund schemes still operating. 

• SBI Mutual Fund was the first non-UTI mutual fund, beginning operations in 1987, while Kothari Pioneer became the first private-sector mutual fund in 1993. 

• The age of a mutual fund does not guarantee better or safer performance. Investors should also consider the fund’s objective, portfolio, risk, costs and current management. 

The oldest mutual funds in India was established long before mutual funds became a mainstream investment choice. Unit Trust of India (UTI) was set up in 1963 and launched its first scheme, Unit Scheme 1964, in 1964. This guide looks at which institution came first, what happened to its first scheme, which early schemes are still running and the key milestones that followed as India’s mutual fund industry expanded. 

Which is the oldest mutual fund in India? 

Unit Trust of India (UTI) is the oldest mutual fund institution in India. It was established in 1963 under the Unit Trust of India Act, 1963, and launched its first scheme, Unit Scheme 1964 (US-64), in 1964. UTI was created as a statutory corporation through an Act of Parliament and initially operated under the regulatory framework applicable at the time. The distinction matters because the oldest institution and the oldest surviving scheme are not necessarily the same. 

The First Scheme: What It Was and What Happened to It 

UTI’s first mutual fund scheme was Unit Scheme 1964 (US-64). It became one of the most widely recognised investment schemes in India’s early mutual fund industry and remained UTI’s flagship offering for decades.  

However, US-64 is no longer an operating mutual fund scheme. UTI suspended dealings in the scheme in 2001 after a significant gap emerged between the value of its underlying assets and the repurchase price of its units. The scheme was subsequently dealt with as part of the restructuring of UTI.  

So, while UTI and US-64 represent the beginning of India’s mutual fund story, neither should automatically be described as the oldest active fund today.  

Oldest Mutual Funds in India: The Earliest Schemes Still Running 

Fund House Type	Scheme or Entity	Year	Status Today
First mutual fund institution	Unit Trust of India	1963	UTI continues as a mutual fund institution
First scheme	Unit Scheme 1964 (US-64)	1964	No longer in operation
Oldest surviving scheme highlighted by UTI	UTI Mastershare Unit Scheme	1986	Active
First non-UTI mutual fund	SBI Mutual Fund	1987	Active
First private-sector mutual fund	Kothari Pioneer Mutual Fund	1993	Merged with Franklin Templeton

UTI’s current scheme information lists UTI Mastershare Unit Scheme as launched in October 1986 and active. SBI Mutual Fund commenced operations in June 1987 as the first mutual fund entity outside UTI. SEBI records identify Kothari Pioneer, launched in July 1993, as the first private-sector mutual fund.  

Before judging an old fund, it helps to understand what mutual funds are and how they pool money from multiple investors to invest in a portfolio of securities. 

The First Non-UTI Mutual Fund 

SBI Mutual Fund was the first mutual fund entity outside UTI, commencing operations in June 1987. This marked an important expansion of the Indian mutual fund industry beyond its original institution.  

Other public-sector institutions soon followed. Canbank Mutual Fund began in December 1987, while Punjab National Bank Mutual Fund and other bank- and insurance-backed funds entered during the following years.  
 
For a broader account of these early milestones, see the full history of mutual funds in India. 

The First Private Sector Mutual Fund 

Kothari Pioneer Mutual Fund was the first private-sector mutual fund in India, beginning in July 1993. SEBI records identify it as the country’s first registered private-sector mutual fund.  

Its entry became possible after SEBI introduced the 1993 Mutual Fund Regulations, which allowed privately owned entities to enter the industry alongside existing public-sector funds. Kothari Pioneer later became part of Franklin Templeton through subsequent industry consolidation.  

Why the Oldest Funds Still Matter 

• They have lived through multiple market cycles: The oldest mutual funds have operated through periods of booms, crashes, reforms and changing investor behaviour. 

• They offer historical context: A long operating history can help investors understand how a scheme and its management have evolved over time. 

• Age is not a performance metric: An older fund is not automatically better than a newer one. Past longevity does not guarantee future returns. 

• Management can change: The people, processes and portfolio strategy behind a scheme today may differ substantially from those at launch. 

• Look beyond age: When comparing the different types of investments available, consider objectives, risk, costs, portfolio strategy and consistency rather than choosing solely on vintage. 

The history of the oldest mutual funds in India is therefore useful context, but it should not become the investment decision itself  

Conclusion 

The oldest mutual funds in India began with UTI in 1963, followed by its landmark Unit Scheme 1964 in 1964. Since then, the industry has expanded from one statutory institution to a broad market of fund houses and schemes. Understanding these milestones can put today’s mutual fund landscape in perspective, but age alone is not a reason to invest. Before choosing a fund, assess its objective, strategy, risk and costs. Age tells you a fund has survived, not that it will outperform. Explore FatakPay to make more informed decisions as you build your mutual fund investment portfolio. 

FAQs  

Which is the oldest mutualfunds in India? 

Unit Trust of India (UTI) is the oldest mutual fund institution in India. It was established in 1963 under the Unit Trust of India Act, 1963. UTI launched its first scheme, Unit Scheme 1964, in 1964, marking the beginning of India’s modern mutual fund industry.  

Which is the oldest mutual fund scheme still running? 

UTI Mastershare Unit Scheme, launched in 1986, is among the oldest mutual fund schemes still operating. UTI’s current scheme information lists its launch date as October 15, 1986, and shows the scheme as active. This is distinct from US-64, the first scheme, which is no longer operational.  

What was the first mutual fund scheme in India? 

Unit Scheme 1964 (US-64) was the first mutual fund scheme in India. It was launched by UTI in 1964, shortly after UTI was established in 1963. US-64 became UTI’s flagship scheme but was eventually discontinued following the restructuring of UTI.  

Which was the first private-sector mutual fund in India? 

Kothari Pioneer Mutual Fund was the first private-sector mutual fund in India. It began in July 1993 after SEBI’s 1993 regulations opened the industry to privately owned mutual funds. Kothari Pioneer later became part of Franklin Templeton through industry consolidation.  

Is an older mutual fund a safer investment? 

No, an older mutual fund is not automatically safer. A long history shows that a scheme has experienced different market conditions, but it does not remove market or investment risks. Investors should assess the scheme’s portfolio, objective, risk level, costs and current management before investing. 

When did mutual funds start in India? 

Mutual funds started in India with UTI’s establishment in 1963 and the launch of Unit Scheme 1964 in 1964. The industry later expanded to public-sector and private-sector fund houses. For a broader timeline, explore the full history of mutual funds in India.