An attempt is presented in this article to explain about Mutual fund in India. The mutual fund industry started in India in a small way with the UTI act, planning what was effectively a tiny savings division within the RBI. Over 25 years this grew fairly successfully and gave investors of good return and therefore in 1989 as the next logical step,  nancial institutions and public sector banks were allowed to  oat mutual fund, and their success encouraged the government to allow the private sector to foray into this area.