Except for Unit Trust of India (UTI), all mutual funds in India are governed by SEBI's Mutual Fund Regulations of 1996. To operate, mutual funds must register with SEBI.

When you invest in a mutual fund, you buy units that represent your share of the fund's holdings. You can buy or sell these units, at any time at the current market value, known as the Net Asset Value (NAV). The NAV changes depending on the fund's performance.

All mutual funds in India are regulated by SEBI, which ensures they work in the best interests of investors. The biggest advantage of investing in mutual funds is that even small investors can access a diversified portfolio of stocks, bonds, and securities, managed by professionals. This would be difficult to achieve with a limited amount of capital

Mutual Funds are a way to invest in stocks and bonds. 

 They collect money from many investors and invest it in various securities, such as stocks, bonds, and money market instruments. Investing in mutual funds is not a replacement for investing in stocks and bonds directly, but rather a way to own a small part of a larger investment. When you own a mutual fund unit, you proportionally share in the fund's profits, losses, income, and expenses. 

Each mutual fund has a clear goal stated in the fund's prospectus. The prospectus is a legal document that provides detailed information about the fund, including its history, manager, and performance. It helps investors understand the fund's objectives and make informed decisions. 

Mutual funds have different objectives, such as:

• Equity (Growth): Invests only in stocks

• Debt (Income): Invests only in fixed-income securities

• Money Market (including Gilt): Invests in short-term government securities

• Balanced: Invests in both stocks and fixed-income securities to balance returns and risk

Mutual funds are managed by Asset Management Companies (AMCs), which employ professional money managers to buy and sell securities according to the fund's objectives. AMCs are regulated by SEBI, and mutual funds are governed by a board of directors who represent the interests of the investors.

SEBI requires that the fund's objectives be stated in the prospectus. The board of directors ensures that the fund is managed in the best interests of the investors, not just the AMC.