What is a Mutual Fund?
Mutual Fund is nothing but money pooled in by a large number of investors, after which the same money is then managed by an adroit professional Fund Manager, who uses all his investment management skills and expertise to invest these pooled money into various financial instruments. Such investments may be in shares, debt securities, money market securities or a combination of these.

As an investor you own units, which basically represent the portion of the fund that you hold, based on the amount invested by you. Therefore, an investor can also be known as a unit holder. The increase in value of the investments along with other incomes earned from it is then passed on to the investors / unit holders in proportion with the number of units owned after deducting applicable expenses, load and taxes if any.

We go to a doctor when we need medical advice or a lawyer for legal guidance. Similarly, mutual funds are investment vehicles managed by professional fund managers. And unless you have a high Investment IQ, we recommend you use this option for investing. Mutual funds are like professional money managers, however a key factor in their favour is that they are more regulated and hence importantly offer investors the ability to analyse and evaluate their track record.

What is saving?
The balance money which is left after the expenses is called savings. This income can come from numerous mediums- it can be your salary, interest income or rent from a house property, income from business etc. In other words, your income inflow is greater than your outflow. We all need financial planning in order to lead our life with ease and comfort and fulfil all our dreams. Financial planning is a process that passes through different levels and savings is the first one. Saving therefore becomes a necessity to ensure your financial stability for future needs. Hence saving must be developed within you as a habit so that you are in a position to invest and generate returns.