It is that time of the year when people make their New Year’s resolutions. One resolution which usually tops is “I will save more”. It is interesting how this idea of saving more spread through the world thanks to two major milestones 100 years ago: the first open-ended mutual fund and World Savings Day.
The roaring 1920s led to a booming US economy and stock markets. There were concerns that American families will be drawn into feverish speculation, invest in risky securities, and lose their savings. There was a need for an investment scheme that could pool savings of households and put money in safer securities. The US had a few closed-ended funds where money could be withdrawn only after completion of the fund’s tenure.
