Abstract
Among various financial instruments, i.e., shares, bonds and debentures. Mutual Fund is a special type of financial instrument that pools the funds of investors who seek to maximize return on investment. Stocks provide high total returns with commensurate level of risk, while bonds may provide lower risks along with regular income. Small investors face a lot of problems in the share market, limited resources, lack of professional advice, lack of information etc. Mutual funds have come as a much needed help to these investors. It is a special type of institutional device or an investment vehicle through which the investors pool their savings which are to be invested under the guidance of a team of experts in wide variety of portfolios of corporate securities in such a way, so as to minimize risk, while ensuring safety and steady return on investment.