What is a Mutual Fund? Or what is an Investment? Why must you invest in Mutual Funds? Let's find out.

An investment is the rescheduling of your natural desire to spend every bit of money you have earned or inherited. You invest for the following reasons:

1. Discontent with the current quality of life and expectations for a better life.

2. Specific need for money at a future date.

3. Limited earning capacity in a specific period of time.

The basic goal of investment is to allow your money to grow at a rate faster than the rise in cost of living, in order to fulfil your goals.

This is where a Mutual Fund comes in.

A Mutual Fund is the pooling together of the financial resources of hundreds or even thousands of individual investors. This money is then put in the equity as well as fixed-income market to get the best possible return. The growth of your investment here is usually at a rate faster than the rise in cost of living.

The gains from this combined resource are then divided among all investors in proportion to their original investment. Looking at it another way, the moneys of individual investor has been pooled together for the mutual benefit of all. That is where we get the name Mutual Fund from.

Interested to know more? Click here: http://www.sundarambnpparibas.in/pdf2/2008/Jul/MF_Demystified_Mar08.pdf

Disclaimer ?Mutual fund investing is subject to market risk. Please read the offer document before investing"