Worldwide, Mutual Funds or the Unit Trust as it is called in some parts of the world, has a long and successful history. The popularity of the Mutual Fund has increased manifold. In developed Financial Markets, like the United States, Mutual Funds have almost overtaken bank deposits and total assets of insurance funds. As on date, in the US alone there are over 5,000 Mutual Funds with total assets of over Rs.100 lakh crores. In India Mutual Fund Industry started with the setting up of UTI in 1964. Public Sector Banks and Financial Institutions began to establish Mutual Funds in 1987. The Private Sector and Foreign Institutions were allowed to set up Mutual Funds in 1993. Today, there are over 29 Mutual Funds and over 300 Schemes with total assets of approximately Rs.10,000 Crores. This fast growing industry is regulated by the SEBI.