The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. The history of mutual funds in India can be broadly divided into four distinct phases.
TYPES OF MUTUAL FUNDS Type of Mutual Fund Schemes Structure Investment Objective Special Schemes Open Ended Funds Close Ended Funds Interval Funds Growth Funds Income Funds Balanced Funds Money Market Funds Industry Specific Schemes Index Schemes Sectoral Schemes
Securities Exchange Board of India (“SEBI”), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Such a high level of regulation seeks to protect the interest of investors.