UPSC Prelims 1995 · General Studies
Question 41: Economy and Social Development
Which one of the following is the largest mutual fund organisation in India?
AnswerThe answer is (d).
Unit Trust of India, set up in 1964 by an Act of Parliament, was the first and by far the largest mutual fund organisation in India in the 1990s, its US-64 scheme drawing millions of small savers. The other funds named were smaller and newer: public sector banks and institutions began launching mutual funds only from 1987. Remember: UTI, 1964, was the pioneer of Indian mutual funds.
Why each option is right or wrong
- (a) SBI Mutual Fund, launched in 1987, was newer and much smaller.
- (b) GIC Mutual Fund was a newer fund sponsored by general insurers, far smaller than UTI.
- (c) Industrial Bank Mutual Fund was a newer fund, far smaller than UTI.
- (d) Right: the oldest and largest fund organisation of the time.
Worth knowing: Dated: UTI was split into two entities in 2003, so its dominant place describes the industry before then.
Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 1995, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.