bullet_square   formation of the first mutual funds in the roaring 20s

bullet_square   how the 1929 stock market crash, a disaster for most financial            institutions, spurred the growth of mutual funds

bullet_square   establishment in 1934, over FDR’s objection, of the United States            Securities and Exchange Commission, the federal agency that regulates            mutual funds

bullet_square   enactment of the Revenue Act of 1936, the tax law that saved mutual            funds from extinction

bullet_square   the unexpected passage of the Investment Company Act of 1940, the            “constitution” of the mutual fund industry

bullet_square   the creation in 1972 of money market funds, which totally changed the            U.S. financial system

bullet_square   enactment of the Employee Retirement Income Security Act of 1974,            which created Individual Retirement Accounts

bullet_square   the accidental development of 401(k) plans, which have revolutionized
           the way Americans save for retirement

bullet_square   the 2003 trading abuses, the greatest scandal ever in the history of the            mutual fund industry

bullet_square   The crisis did not result from a lack of regulatory tools, but from            regulators’ failure to utilize tools they possessed: The SEC            exempted asset-backed pools from regulation, repealed the uptick rule on            short-sales, and lowered capital standards for securities firms. The Federal            Reserve Board declined to crack-down on unscrupulous lending practices,            and, most importantly, the Fed refused to raise interest rates to curb            excessive housing speculation

bullet_square   Mutual funds were hit hard by the crisis, but fared considerably            better than other institutions, such as hedge funds, banks, and            securities firms, that employed leverage far in excess of that permitted for            mutual funds

bullet_square   The crisis caused the first large money market fund to fall below            one dollar per share, leading the SEC to tighten its regulation of money            funds. But it would be perverse to subject money funds to bank regulation.            Taxpayers have paid billions to bail out banks, whereas money funds,            regulated by the SEC, have not cost taxpayers one cent

bullet_square   In the wake of the crisis there were calls to limit the size and            activities of financial institutions. The Administration and Congress            rejected this approach, and instead the Dodd-Frank Act granted regulators,            who produced the crisis, even more authority. We are headed toward a
           world of giant financial conglomerates that are too big to manage or
           regulate, riddled with conflicts, and periodically in need of massive            government bailouts

bullet_square   The most important event in fund history

bullet_square   The worst event in fund history

bullet_square   The most important person in fund history
Link to Oxford University Press

The Rise of Mutual Funds: An Insider’s View describes the developments that have produced mutual funds’ long history of success. Among these developments are:

Many events have never been reported before. Others have been discussed in works on other subjects such as retirement plans. Thus, this is the first book that pulls together the many strands of mutual funds’ unique history. Moreover, the author was personally involved in developments over the past forty years, and much of the book is a personal narrative regarding the people and events that have produced mutual funds’ success.
    In 1940 few Americans had heard of mutual funds. Today U.S. mutual funds are the largest financial industry in the world, with over 90 million shareholders and over $12 trillion in assets.
The second edition, updated to cover the 2008 financial crisis, has been published in paperback and is available by order from OXFORD UNIVERSITY PRESS and in bookstores.
In the new second edition Fink discusses key elements of the 2008 financial crisis and its impact on mutual funds, also offering his views on mutual fund history:

Second, enlarged edition
 published 2011
see below

 

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