Mutual Funds in India Info: # Part 1
What is Mutual Funds? A Mutual Fund is a trust that collects money from many investors and invest in various asset classes (equity,debt,liquid asset,etc). It is called "Mutual" because all the profit, loss, risks and dividends from the investments are shared among all the investors according to their contributions. History Of Mutual Funds Unit Trust of India (UTI) was the first mutual fund set up in India in the year 1963. In early 1990s, the Government allowed public sector Banks and Institutions to set up mutual funds. In the year 1992, Securities and Exchange Board of India (SEBI) Act was established. The objectives of SEBI are: To formulate policies and regulates the mutual funds. To protect the interest of investors. To promote the development of securities market. In 1993, SEBI notified regulations for the mutual funds. After 1993, Private sector companies started to offer mutual funds. In 1996, the regulations were completely revise