Archive for April, 2016

April 9, 2016

History of Mutual Funds in the World

Mutual funds go back to the times of the Egyptians and Phoenicians when they sold shares in caravans and vessels to spread the risk of these ventures. The foreign and colonial government Trust of London of 1868 is considered to be the fore-runner of the modern concept of mutual funds. The USA is, however, considered to be the Mecca of modern mutual funds.

The establishment of investment companies which provided an opportunity to small investors to invest in the equity markets attracted the investment opportunity in the stock market. The first investment company was The Scottish-American Investment Company, set-up in London in 1860. Initially, these investment trusts became very popular and their number increased to over 50. But most of them were wiped-out in the 1890 stock market crisis.

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