India's Mutual Fund Industry has undergone a significant structural transformation during the past two decades of deregulation. In this context, the performance of mutual fund industry has become an issue of concern to the investors and the policy makers. Several studies have been taken up to evaluate the performance of mutual funds, the problems of mutual funds, portfolio diversification, emerging trends and prospects of mutual fund industry. An attempt is made in this study to assess the growth trends in the public and private sector mutual funds in mobilisation of funds, growth in the aspects like the number of schemes, unit holding pattern and Assets Under Management. The study also examines the portfolio investment behaviour of the UTI and other mutual funds during the post deregulation period. The study further attempts to evaluate the financial performance of various public and private sector sample schemes, beside eliciting and analyzing the investors' opinions on mutual fund investments.