The process of setting up a Mutual Fund is initiated by a sponsor who creates a Trust (the fund) under the Indian Trust Act. In turn an Asset Management Company (AMC) is appointed by the Trust. The interests of the investors in the Mutual Fund are guaranteed by the Trustees by ensuring that the operations of the fund comply with the relevant regulations. The fund also has to be approved by the Securities and Exchange Board of India (SEBI), the market regulator.