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Mutual Fund is a trust that pools together the resources of investors to make a foray into investments in the capital market thereby making the investor to be a part owner of the assets of the mutual fund. These funds are managed by Professional Money Managers. It can be of different type, from Growth Fund (meaning funds whose funds are invested in equities to gain high returns in longer return) to Fixed Income Funds (meaning finds whose funds are invested in securities and debts that generate fixed income over short term).

These are better way of investing for investors who do not want to take more risk and have less access to daily fluctuations of Market activities. Mutual Funds are considered for investors who are willing for no exceptional returns with no exceptional risks. Depending upon the type of portfolio invested in by the Fund, risk and return maybe high or low.