In India, the Securities and Exchange Board of India (SEBI) regulates mutual funds, overseeing their formation, operation, fees, and performance.
India's mutual fund industry has a three-tier structure with fund sponsors creating funds, trustees overseeing operations, and AMCs managing investments, all regulated by SEBI.
The mutual fund industry in India started in 1963 with the establishment of UTI by RBI, and it saw rapid growth after private-sector funds entered in the 1990s.
SEBI regulates India's mutual funds with rules for their setup, management,and transparency, aiming to protect investors and ensure diverse, risk-managed portfolios.
Assess Your Risk Appetite: Assess investment goals, risk tolerance, and plan fund allocation across stocks, bonds & other financial instruments.
Research MF Schemes: Research mutual funds by assessing their performance history, manager expertise, fund house reputation, & expense ratios.
Diversification: Diversification means spreading assets across various classes and sectors to reduce risk and mitigate market volatility.
Timeframe: Investment duration depends on the risk profile and goals, with debt mutual funds for short term and equity funds for the long term.