How to form a Mutual Fund in India

• Just like to form a company we require a promoter(s), similarly to form a Mutual Fund (MF) we require a "Sponsor".
• In India the MF are established in the form of Public Trusts under The Public Trust Act, 1882
• STEP I- The sponsor asks SEBI for inpriciple approval to form a MF
• STEP II- After approval, sponsor forms a Public Trust & bears all the expenses
• STEP-III- Sponsor appoints the Trustee of the MF
• STEP-IV-The Trustee appoints the the Fund Manager i.e Assets management company. The AMC manages the fund & charges the fees