If you’ve ever wondered which of the oldest mutual funds in India have truly stood the test of time, you’re not alone. Thousands of investors search for funds with proven track records and for good reason. A fund that has survived multiple market crashes, regulatory overhauls, and economic downturns tells you something no NAV chart alone can.
Let’s walk you through India’s most enduring mutual fund schemes, what makes them relevant even today, and how you can invest in them through Pocketful.
Which Is the Oldest Mutual Fund in India?
The oldest mutual fund that’s still going strong in India is UTI Mastershare Unit Scheme – and it’s been around since 15 October 1986.
Originally a closed fund, its format was changed to open-ended in 2003. It’s pretty much a large-cap equity fund – and with a 38-year performance record under its belt – it has one of the longest records to date of multiple market cycles in the country.
Fun fact: UTI Mastershare was launched before the BSE Sensex had even crossed the 700 mark.
A Brief History of Mutual Funds in India
Before we list the old mutual funds in India, let’s help to understand where they came from.
The Indian mutual fund story begins in 1963, when the Government of India established the Unit Trust of India (UTI) through an Act of Parliament. The Reserve Bank of India played a key role in setting it up. UTI’s goal was simple, give small investors access to the capital market.
In 1964, UTI launched its first scheme, Unit Scheme 1964 (US-64). For almost 24 years, UTI enjoyed a complete monopoly.
The industry evolved in four broad phases:
| Phase | Period | Key Development |
|---|---|---|
| Phase 1 | 1963 – 1987 | UTI monopoly, US-64 launched |
| Phase 2 | 1987 – 1993 | Public sector banks enter; SBI MF, Canbank MF launched |
| Phase 3 | 1993 – 2003 | Private players allowed; SEBI takes over regulation |
| Phase 4 | 2003 – Present | Rapid growth, digital platforms, SIP popularisation |
This structure gave birth to the oldest mutual fund schemes in India that we still know today.
Read Also: Best SIP Mutual Funds in India
List of the Oldest Mutual Fund Schemes in India (Still Active)
Here is a curated list of oldest mutual fund schemes in India that have remained operational across decades:
| Fund Name | Launch Date | Category | AUM (Approx.) | 5-Year CAGR |
|---|---|---|---|---|
| UTI Mastershare Unit Scheme | Oct 1986 | Large Cap | ₹12,719 Cr | 20.38% |
| SBI Magnum Equity ESG Fund | Jan 1991 | ESG Equity | ₹5,556 Cr | 20.72% |
| LIC MF Aggressive Hybrid Fund | Mar 1991 | Aggressive Hybrid | ₹506 Cr | 10.46% |
| UTI Flexi Cap Fund | May 1992 | Flexi Cap | ₹27,706 Cr | 14.98% |
| Tata Large & Mid Cap Fund | Feb 1993 | Large & Mid Cap | ₹8,294 Cr | 23.74% |
| Canara Robeco Equity Hybrid Fund | Feb 1993 | Hybrid | ₹11,450 Cr | 12.34% |
| Franklin India Prima Fund | Oct 1993 | Mid Cap | ₹8,363 Cr | 20%+ |
| Franklin India Bluechip Fund | Dec 1993 | Large Cap | ₹9,000 Cr | 14%+ |
Overview of Oldest Mutual Fund Schemes in India
1. UTI Mastershare Unit Scheme (1986) – The Pioneer
This is much more than the oldest mutual fund scheme in India – it’s a landmark moment in the country’s financial history. Back when most Indians had never even heard of the words ‘equity fund’, UTI Mastershare made retail investors’ first foray into large-cap stocks a little less daunting. It was a pretty big deal, let’s be honest.
Key highlights:
- Invests about 95% of its capital in large-cap blue-chips.
- Expense ratio: roughly 1.76% (for the regular plan)
- 10 years on, the CAGR is about 12.54%… and since inception, 15.35%
- As of 2025, its AUM is ~₹12,719 crore
This fund’s navigated some of the toughest times – 1992’s Harshad Mehta scandal, the 2000 dot-com crash, the 2008 global financial crisis and the 2020 COVID selloff, to name a few. And somehow, it still managed to deliver. That’s a track record which deserves attention.
2. SBI Magnum Equity ESG Fund (1991) – The Reformer
Initially launched as Magnum Multiplier Scheme ’90, SBI Magnum Equity ESG Fund is one of the oldest public-sector equity funds still around today. In 2018, following SEBI’s new guidelines, it was rebranded to its current form and shifted its focus to ESG investing.
Key highlights:
- Category: ESG/Thematic Equity
- AUM is ₹5,556 crore
- The expense ratio for the regular plan is about 1.94%
- Over 5 years, the CAGR is around 20.72%
For those who believe in making a difference with their investments as well as getting solid returns, this one of the old mutual funds in India that fits the bill.
3. LIC MF Aggressive Hybrid Fund (1991) – The Balanced Veteran
For a long time, this scheme was known as LIC Balanced Fund and has been around since March 1991. As a classic hybrid, it roughly splits its portfolio ¾ in equity and ¼ in debt instruments.
Key highlights:
- Category: Aggressive Hybrid
- AUM is ₹506 crore
- Expense ratio for the regular plan is roughly 2.48%
- Over 5 years, the CAGR is about 10.46%
The fact that this fund has a relatively smaller AUM, unfortunately means it flies under the radar compared to its peers. However, its three-decade track record is something to take note of. It’s perfect for those who prefer a mix of equity and debt.
4. UTI Flexi Cap Fund (1992) – The Versatile Survivor
When launched in May 1992 as UTI Equity Fund , UTI Flexi Cap Fund was one of the oldest mutual funds out there, especially in the flexi-cap category. This gives the fund manager freedom to decide where to allocate the capital across large-, mid- and small-cap stocks – the key is getting the right mix based on valuations.
Key highlights:
- Category: Flexi Cap
- AUM is ₹27,706 crore
- Expense ratio for the regular plan is about 1.64%
- Over 10 years, the CAGR is about 13.20%
The size – getting on for ₹27,000 crore in AUM – is a testament to the years and years of investor trust that’s gone into the fund.
5. Tata Large & Mid Cap Fund (1993) – The Growth Seeker
Originally launched as Ind Sagar and later as Tata Young Citizens Fund, this scheme has gone through mandate changes and eventually settled into the Large & Mid Cap category. It balances the stability of large-cap companies with the growth potential of mid-caps.
Key highlights:
- Category: Large & Mid Cap
- AUM is ₹8,294 crore
- Expense ratio: 1.78% (regular plan)
- 5-year CAGR: 23.74%
- 3-year CAGR: 20.65%
The 23.74% five-year CAGR makes this one of the stronger performers among oldest mutual funds in India.
6. Canara Robeco Equity Hybrid Fund (1993) – The Conservative Compounder
This fund has been building wealth quietly since February 1993. It maintains a 65–80% equity exposure and parks the rest in debt, making it a popular choice for moderate-risk investors.
Key highlights:
- Category: Aggressive Hybrid
- AUM is ₹11,450 crore
- 10-year CAGR: 12.34%
- One-year return (June 2025): 10.12%
It is the go-to fund for investors who want equity participation without full equity volatility.
7. Franklin India Prima Fund (1993) – The Oldest Small & Mid Cap Fund
When talking about the oldest small cap mutual fund in India, Franklin India Prima Fund deserves a mention. Launched on 30 October 1993, it is one of the earliest funds to focus on mid- and small-cap stocks.
Key highlights:
- Category: Mid Cap
- AUM: ₹8,363 crore
- Focus: High-growth mid and small-sized companies
- Managed by Franklin Templeton AMC
Franklin Templeton itself took over the erstwhile Kothari Pioneer Mutual Fund, which was India’s first private sector AMC. That lineage makes Franklin India Prima Fund one of the oldest surviving small and mid cap oriented schemes in the country.
8. Franklin India Bluechip Fund (1993) – The Private Sector Pioneer
Launched in December 1993, this was one of the earliest large-cap equity funds from the private sector. It was originally set up by Kothari Pioneer (later acquired by Franklin Templeton) and has consistently focused on investing in established, blue-chip businesses.
Key highlights:
- Category: Large Cap
- Primary focus: Blue-chip, industry-leading companies
- One of the earliest private-sector equity mutual fund schemes in India
What Makes These Old Mutual Funds Still Relevant?
You might wonder, with hundreds of new funds launching every year, why should you care about funds that are 30+ years old?
Here’s what decades of operation actually mean:
- Multiple market cycles tested: these funds have made it through not just one, not two, but multiple market meltdowns: the Harshad Mehta fiasco in 1992, the dot-com implosion in 2000, the Lehman Bros. collapse in 2008, the demonetisation panic in 2016 and even the COVID-19 pandemic of 2020. That’s a lot of years of real-world testing that new funds just can’t match up to.
- Experienced fund management: Fund houses that’ve been doing this for a long time – & the people running these funds have developed a lot of institutional knowledge over the years.
- SEBI track record: Older funds have had time to get it right – to build in good practices for compliance & governance. They’ve also got a solid record with SEBI.
- Historical data for analysis: 25-38 years of NAV history is an incredible resource for an investor. You can put these funds through all sorts of scenarios to see how they’d perform in different markets conditions.
Key Things to Check Before Investing
Age alone does not make a fund a good investment. Before putting money into any of these oldest mutual fund schemes in India, evaluate:
- Expense ratio – Lower is better, especially for long-term compounding. Direct plans typically cost 0.5 – 1% less than regular plans.
- Fund manager tenure – A great 30-year track record means less if the current manager has only been in the chair for 2 years.
- Category relevance – Some funds like SBI Magnum ESG changed their mandate significantly. Check whether the current investment objective matches your goals.
- Exit load – Most equity funds charge a 1% exit load if you redeem within 12 months.
- Rolling returns – Don’t just look at point-to-point returns. Check 3-year and 5-year rolling returns to see consistency.
Read Also: Best SIP Apps in India for Investment
Benefits of Investing in Old Mutual Funds in India
- Proven resilience across economic cycles
- Established track record for performance benchmarking
- Credible fund houses with strong governance
- Diverse categories from hybrid to ESG to large & mid-cap
- Investor trust built over decades, reflected in large AUMs
Limitations to Keep in Mind
- Past performance is not a guarantee of future returns
- Mandate changes over time can alter a fund’s risk profile significantly
- Larger AUMs in some funds may limit agility, especially in mid and small-cap positions
- Higher expense ratios in regular plans can eat into compounding over time
- Old does not mean best a newer fund with a stronger portfolio strategy can outperform
How to Invest in Mutual Funds Through Pocketful
If you want to start investing in mutual funds the right way, Pocketful makes the entire process simple and structured. Here’s how you can get started:
Step 1: Create Your Account
The first step is to download the Pocketful app and sign up. The registration process is quick and takes only a few minutes.
- Enter your mobile number and verify with OTP
- Set your login credentials
- Access your personal dashboard
Step 2: Complete Your KYC
KYC is mandatory before you can invest in any mutual fund in India. On Pocketful, the entire KYC process is online and paperless.
- Add your PAN and Aadhaar details
- Enter your bank account information
- Complete the verification process
Step 3: Select a Mutual Fund
Once your account is ready, you can browse mutual funds based on your goal, risk appetite, and investment horizon. Pocketful lists funds across all major categories.
- Choose from equity, debt, hybrid, or index funds
- Filter by AMC, fund rating, or past performance
- Compare expense ratios before finalising
Step 4: Start Your SIP or Lump Sum Investment
Decide how you want to invest – through a monthly SIP or a one-time lump sum. SIPs can be started with as little as ₹100 per month.
- Set your SIP amount and date
- Choose the fund and confirm your investment
- Track your SIP performance directly from the dashboard
Pocketful gives you access to direct mutual fund plans with zero commission, so your expense ratio stays low and more of your money stays invested.
Read Also: Top 10 High-Return Mutual Funds in India
Conclusion
The oldest mutual funds in India – from UTI Mastershare (1986) to Franklin India Prima Fund (1993) – represent decades of disciplined investing through markets that were barely regulated, then rapidly modernised. These old mutual funds in India have compounded wealth through crises that most newer schemes have never faced. While age alone should not drive your investment decision, a long track record combined with strong current fundamentals is a powerful combination. Whether you are exploring the oldest small cap mutual fund lineage or looking for a hybrid with 30 years of data, Pocketful makes it easy to access all these funds in one place.
Invest in mutual funds with Pocketful – zero brokerage on delivery trades and completely free mutual fund investing, right from your phone.
Disclaimer: Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance is not indicative of future returns. This article is for informational purposes only and does not constitute investment advice.
Frequently Asked Question (FAQs)
Which is the oldest mutual fund in India?
The UTI Master Share Unit Scheme – a fund that’s been around since a long time now – was launched on 15 October 1986. But it still is in circulation which is quite an achievement. It is being managed by UTI AMC and is a large-cap equity type of fund – that’s interesting. The AUM is a staggering over 12 thousand crores
What is the oldest mutual fund scheme in India from the private sector?
We all know that the first private sector funds were a way off when Franklin India Bluechip Fund came into being in December 1993 thanks to Kothari Pioneer (who subsequently got taken over by Franklin Templeton). They’ve consistently stuck to a strategy of investing in large-cap, blue-chip companies right from the start.
Which is the oldest small-cap mutual fund in India?
If you’re looking at the older small cap oriented schemes then the Franklin India Prima Fund is definitely one to consider – its been around since 30 October 1993. Its one of the first funds to aim at high growth smaller companies which can be an exciting thought.
Are old mutual funds better than new ones?
Old mutual funds in India do have the advantage of long history going through multiple market cycles – its a big plus when its time for you to decide. However, age is not the only thing that matters a fund’s current portfolio quality, expense ratio and the fund manager themselves are just as important when you are trying to make a decision about investing.
Is it safe to invest in the oldest mutual funds in India?
Any kind of investment in a mutual fund carries a market risk factor. But the oldest funds in India such as UTI Mastershare or Canara Robeco Equity Hybrid have proven to be resilient to market fluctuations over the years, a testament to their strong governance and risk management. So before you invest do take a look at the fund’s current performance and objective
