In what form mutual fund is set up?

A trust is used to establish a mutual fund. It has trustees, sponsors, AMCs and custodians. A sponsor, or multiple sponsors, who are similar to the promoter of a company, establishes the trust. The mutual fund's trustees hold the property of the unitholders. The SEBI-approved Asset Management Company (AMC), manages the funds through various investments in securities. The securities of different schemes are held in the custody of custodian who is registered with SEBI. They have the general power to supervise and direct AMC. They oversee the mutual fund's compliance with SEBI Regulations. They should not be affiliated with sponsors. AMC directors must also be independent at 50%. Before any mutual fund can launch any scheme, they must be registered with SEBI.