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A mutual fund may be a scheme during which several people invest their money for a standard financial cause. The collected money invests within the capital market and therefore the money, which they earned, is split supported the number of units, which they hold. The open-end fund industry started in India during a small way with the UTI Act creating what was effectively a little savings division within the RBI. Over a period of 25 years this grew fairly successfully and gave investors an honest return, and thus in 1989, because the next logical step, public sector banks and financial institutions were allowed to float mutual funds and their success emboldened the govt to permit the private sector to raid this area. The advantages of open-end fund are professional management, diversification, and economies of scale, simplicity, and liquidity. The disadvantages of open-end fund are high costs, over-diversification, possible tax consequences, and therefore the inability of management to ensure a superior return. In mutual fund, analysed with standard deviation, sharpe ratio, beta to analyse the growth return .Mutual funds are easy to buy and sell. You can either buy them directly from the fund company or through a 3rd party. Before investing in any funds, one should consider some factor like objective, risk, Fund and scheme, etc. There are many, many types of mutual funds. You can classify funds-based Structure (open-ended & close-ended), Nature (equity, debt, balanced), Investment objective (growth, income, money market) etc.