Investment.

We know that mutual funds are those that collect small monies from the investors and invest the same as a lump sum in shares,stocks,bonds, govt securities, etc. the first mutual fund set up in India was unit trust of India which is best known for its unit 64 scheme. Today, many mutual funds are available in India which are managed by banks like SBI, Canara Bank, Standard Chartered, etc; managed by insurance companies like LIC, GIC, etc; managed by private sector companies like Reliance, Tatas, Birlas, etc; managed by MNCs like Alliance, Morgan Stanley, etc. mutual funds offer variety of schemes to satisfy the investors according to their requirement which can be classified into 3- Groups growth, Income and balanced. The experience in developed countries suggests that with the sophistication in the market place and with individual investors finding it difficult to keep a track on market, a mutual fund does definitely bring a solution. When an investor finds it difficult to study the movement in market but still wants to be a part of it, then mutual fund is a better choice. According to the requirement of the investor- he can earn capital appreciation or regular income or a balance between the both.