The Origin of Mutual Funds

K. Geert Rouwenhorst
Professor K. Geert Rouwenhorst’s latest research on the origins of mutual funds shows they emerged as early as the second half of the 18th century in The Netherlands, and traces their history from the development of securitization in the 17th century to the invention of depository receipts in the 19th century. Apparently, the motivation for organizing the first mutual funds was to provide diversification for small investors.