Mutual funds have consistently demonstrated their strength and reliability, making them one of the most trusted and accessible investment options for Indian investors. Over the years, they have transformed personal finance by making wealth creation simpler, encouraging disciplined investing, and helping millions of people grow their savings.
From the launch of the Unit Trust of India (UTI), the country’s first mutual fund, nearly sixty years ago to the introduction of the first private-sector mutual fund in 1993, mutual funds have evolved into a preferred investment choice for individual investors. They are also among the most well-regulated financial products in India.
Mutual fund returns have also delivered value to investors over time. This article highlights six of the oldest mutual funds launched in India since 1986. These funds have a strong track record of dividend payments and belong to the equity or hybrid categories. Funds that combine children's plans or insurance features, such as UTI ULIP, LIC MF ULIS, and UTI CCF – Savings Plan, have not been included in this list.
What are the oldest mutual funds in India?
In the diverse world of investment, old mutual funds in India have established themselves as a cornerstone for both novice and seasoned investors. Among multiple options of investment available today, the old mutual funds in India hold a special place, offering a blend of trust and performance cultivated over decades.
Some of the oldest mutual funds in India include:
- Unit Trust of India (UTI)
- UTI Mastershare Fund
- UTI Flexi Cap Fund, and
- SBI Magnum Equity ESG Fund
We will read more about these funds in the next section.
Key takeaways
- The oldest mutual funds in India demonstrate that longevity is built on disciplined investing, consistent portfolio structure, and the ability to adapt across changing market cycles — not on chasing short-term performance.
- Many of these long-standing funds prioritised diversification and downside protection over aggressive growth, which is a key reason they have survived decades of market volatility.
- Studying how the oldest mutual funds performed during periods of economic stress — such as the 2008 global financial crisis — offers more meaningful insight than evaluating their recent one-year returns alone.
Age alone does not guarantee superior returns. Investors should evaluate these funds in the context of their own risk appetite, investment time horizon, and overall portfolio balance before making allocation decisions.
Overview of the oldest surviving mutual funds in India
The oldest mutual funds in India have been instrumental in shaping the investment landscape, offering a variety of schemes ranging from equity to debt and hybrid funds. Old mutual funds in India have not only stood the test of time but have also adapted to market changes, ensuring relevance and sustained performance. With a legacy spanning several decades, these funds provide a testament to the resilience and growth potential of the Indian mutual fund industry.
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List of the oldest mutual funds in India
Unit Trust of India (UTI)
Unit Trust of India is regarded as one of the pioneers of the Indian mutual fund industry. Established in 1963, UTI played a crucial role in introducing mutual fund investing to Indian households and laid the foundation for collective investment culture in the country.
UTI Mastershare Fund
Established on October 15, 1986, UTI Mastershare was a closed-ended vehicle at inception, and it was the first equity-diversified fund in the Indian mutual fund sector. Later, in 2003, it was changed into an open-ended fund. The fund has a strong history of paying out rights issues, bonuses, and dividends. For now, it falls within the large-cap fund category.
SBI Magnum Equity ESG Fund
This MF was established on January 1, 1991. The equity-oriented fund, first introduced as Magnum Multiplier Scheme '90, was renamed Magnum Equity Fund upon its conversion to an open-ended fund in 1997. The fund house renamed it SBI Magnum Equity ESG Fund and altered its attributes during the 2018 re-categorisation procedure.
Aggressive Hybrid Fund LIC MF
Since its founding on January 1, 1991, the LIC MF Aggressive Hybrid Fund—formerly known as the LIC Balanced Fund—has been managed with a balanced mix of debt and equity. As of right now, it falls into the aggressive hybrid funds category.
UTI Flexi Cap Fund
The fund was first created as UTI Mastergain in 1991 and was established on May 18, 1992. It changed its name to UTI Equity in 2005. When the market regulator approved flexicap and multi-cap categories in 2021, the fund underwent another name change to UTI Flexi Cap Fund.
Canara Robeco Equity Hybrid Fund
Since its inception on February 1st, 1993, the Canara Robeco Equity Hybrid Fund, formerly known as GIC Balanced, has consistently outperformed other funds. It is currently included in the category of aggressive hybrid funds.
Tata Large & Mid Cap Fund
After being introduced as Ind Sagar on February 25, 1993, it was later changed to Tata Large & Mid Cap Fund. This MF invests roughly 35 percent of its total capital in large- and mid-cap equities under the present strategy.
List of the oldest surviving mutual funds in India
| Fund name | Category | Date of inception |
| SBI Magnum Equity ESG Fund | Equity – Thematic (ESG) | 01 Jan 1991 |
| Tata Large & Mid Cap Fund | Equity – Large & Mid Cap | 31 Mar 2003 |
| UTI Mastershare Fund – IDCW | Equity – Large Cap | 15 Oct 1986 |
| SBI Large & Mid Cap Fund – IDCW | Equity – Large & Mid Cap | 31 Mar 1997 |
| Franklin India Prima Fund – Growth | Equity – Mid Cap | 01 Dec 1993 |
| Franklin India Bluechip Fund – Growth | Equity – Large Cap | 01 Dec 1993 |
| UTI Flexi Cap Fund – IDCW | Equity – Flexi Cap | 30 Jun 1992 |
Performance list of oldest mutual funds in India
| Fund name | Category average (approx) | Current value of Rs. 10,000 invested at inception* | Absolute returns (approx) | Annualised returns (approx) | Date of inception |
| Franklin India Bluechip Fund – Growth | ~15–16% | Rs. 15,50,000 | ~15,400% | ~19–20% | 01 Dec 1993 |
| UTI Flexi Cap Fund – IDCW | ~16–17% | Rs. 4,20,000 | ~4,100% | ~13–14% | 30 Jun 1992 |
| UTI Mastershare Fund – IDCW | ~15–16% | Rs. 5,40,000 | ~5,300% | ~13% | 15 Oct 1986 |
| Franklin India Prima Fund – Growth | ~19–20% | Rs. 13,80,000 | ~13,700% | ~19–20% | 01 Dec 1993 |
| Tata Large & Mid Cap Fund – Growth | ~18–19% | Rs. 4,60,000 | ~4,500% | ~20–22% | 31 Mar 2003 |
| SBI Magnum Equity ESG Fund | ~15–16% | Rs. 1,70,000 | ~1,600% | ~9–10% | 01 Jan 1991 |
| SBI Large & Mid Cap Fund – IDCW | ~17–18% | Rs. 4,10,000 | ~4,000% | ~15–16% | 31 Mar 1997 |
The figures mentioned above are approximate and illustrative, based on historical data, and do not represent live or current NAV-based values. Actual returns may vary depending on market conditions and scheme performance.
How to invest in the oldest mutual funds in India?
- Online investment options: Online investing has become a popular and convenient way to invest. Investors can purchase mutual fund units through AMC websites, mutual fund investment platforms, banks, or registered brokers. Before investing, individuals must complete the required KYC process and provide the necessary documents.
- Offline investment options: Some investors continue to prefer offline investment methods. Mutual fund investments can be made through authorised distributors, mutual fund agents, or bank branches. These channels generally require in-person document verification and completion of the application process.
- Basic checks before investing: Before making an investment, it is important to review key fund details. These include the expense ratio, exit load, investment objective, and the experience of the fund manager, as mentioned in the scheme documents.
The fundamentals of mutual funds
Mutual funds are an investment vehicle designed to pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. This concept of collective investment gives investors access to a wider range of securities, which wouldn’t otherwise be feasible. A key advantage of mutual funds is the diversification they offer, mitigating individual security risks and potentially stabilising returns over time.
Types of mutual funds
Incorporating old mutual funds into your portfolio, either through a one-time lump sum investment or a SIP investment, can significantly contribute to achieving your broader financial objectives in various ways. Mutual funds are categorised based on their investment objectives, underlying assets, and the kind of returns they aim to generate. Here are some of the main types:
- Equity funds: These funds invest primarily in stocks and aim for growth by capital appreciation. They are suitable for investors with a higher risk tolerance looking for long-term returns.
- Debt funds: Focused on investing in bonds and other debt instruments, debt funds aim to provide regular income to investors. They are considered less risky compared to equity funds and are suitable for conservative investors.
- Hybrid funds: Combining the characteristics of both equity and debt funds, hybrid funds invest in a mix of stocks and bonds. They aim to balance the risk and return by diversifying across asset classes.
- Index funds: These funds aim to replicate the performance of a specific index, like the NSE Nifty or BSE Sensex, by investing in the same stocks in the same proportions. They are known for their lower expense ratios due to the passive management approach.
Sectoral/thematic funds: These funds invest in specific sectors of the economy or follow a particular theme. While they can offer higher returns when the chosen sector or theme does well, they carry a higher risk due to their lack of diversification. Read more about, what are sectoral mutual funds.
Benefits of investing in the oldest mutual funds
Investing in older mutual funds offers several advantages, especially for conservative investors with a long-term investment horizon:
- Proven track record: These funds have performed across different market conditions, providing investors with a clearer understanding of their long-term performance.
- Established fund management: Older mutual funds are often managed by experienced professionals with strong knowledge of market trends and investment strategies.
- Reduced volatility: Historical performance data can provide greater confidence and help investors assess potential risks more effectively.
- Trust and transparency: A long operating history can indicate strong governance standards and transparent investment practices.
- Diversification: Many older funds maintain diversified portfolios across sectors and market capitalisations, which can help manage investment risk.
Regulatory compliance: Established funds generally have robust internal processes and a strong record of complying with SEBI regulations.
Conclusion
The oldest mutual funds in India embody the rich history and growth trajectory of the Indian mutual fund industry. They offer investors a blend of stability, performance, and trust, making them a worthy consideration for your investment portfolio. By following the right steps and making informed decisions, you can leverage these time-tested investment vehicles to achieve your financial goals.
Mutual funds present a viable option for diversifying your investment portfolio, with choices ranging from conservative to more aggressive strategies. Whether you are looking to accumulate wealth over the long term, generate regular income, or both, there's likely a mutual fund that matches your investment profile and goals.
As always, it is advisable to do your research and consider consulting a financial advisor to choose the mutual fund that best suits your needs. The Bajaj Broking website provides a wide selection of mutual funds to choose from and has valuable resources to help make informed decisions.
