Mutual funds are money-managing institutions set up to professionally invest the money pooled in from the public. These schemes are managed by Asset Management Companies (AMC), which are sponsored by different financial institutions or companies. These funds have been a significant source of investment in both government and corporate securities.
UTI is the largest mutual funds company that was set up by the government in 1964. UTI has an extensive marketing network of over 35, 000 agents spread over the country. The Mutual Funds dealing exclusively with money market instruments have to be registered with RBI. All Mutual Funds are allowed to apply for firm allotment in public issues. SEBI regulates the functioning of mutual funds, and it requires that all Mutual Funds should be established as trusts under the Indian Trusts Act.