MUTUAL FUND is a vehicle for investing in stocks and bonds. It pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities.
TYPES OF MUTUAL FUNDS

1.Open ended Mutual Funds

2.Close ended Mutual Funds

3.Interval Schemes

4.Growth Schemes

5.Income Schemes

6.Index Schemes

7.Tax Saving Schemes

8.Money Market Schemes

9.Balanced Scheme

IN india the advent of MUTUAL FUNDS started in the year 1964 which was started by UTI unittrust of india which was established by Act of Parliament on 1963.
The year 2006 scored high in terms of both returns and volatility

In 2006
 20 funds (13%) out-performed the Sensex

 50 funds (37%) out-performed the Nifty