Mutual funds have been a significant source of investment in both government and corporate securities. Decades it has been the monopoly of the state with UTI being the key player, with invested funds exceeding bn. The state-owned insurance companies also hold a portfolio of stocks. Presently, numerous mutual funds exist, including private and foreign companies and mainly state- owned Banks. Foreign participation in mutual funds and asset management companies (AUM) is permitted on a case-by-case basis. UTI, the government in 1964 set up the largest mutual fund in the country, to encourage small investors in the equity market,.
