@theravijain: Plan Today For a Better Tomorrow

Minimum One can invest in Mutual Fund is 1000/Month in a SIP (Systematic Investment Plan)
Minimum Once can invest as Lumsum in Mutual Fund is Rs.5000

Here is the Example of Investment Method and Returns

SIP	*Month*	*Invested*	*Unit Price*	*Total Units*	*Value*
You Start your investment.	January	1000	10	100.00	1000.00
Installment in	February	1000	8	125.00	1800.00
Installment in	March	1000	7.56	132.28	2701.00
Installment in	April	1000	11	90.91	4930.03
Installment in	May	1000	14	71.43	7274.58
Total		5000		519.61	7274.58

(Total Units) X (Last month Unit Price)

519.61 X 14 = 7274.58

Here you have invested Rs.5000/- in 5 months and Value of invested amount is Rs.7274.58/-

A MUTUAL FUND is a professionally-managed type of collective investment scheme that pools money from many investors to buy securities (stocks, bonds, short-term money market instruments, and/or other securities). A mutual fund has a fund manager that trades (buys and sells) the fund's investents in accordance with the fund's investment objective.

Mutual funds can be either or both of open ended and closed ended investment companies depending on their fund management pattern. An open-end fund offers to sell its shares (units) continuously to investors either in retail or in bulk without a limit on the number as opposed to a closed-end fund. Closed end funds have limited number of shares.

Mutual funds have diversified investments spread in calculated proportions amongst securities of various economic sectors. Mutual funds get their earnings in two ways. First is the most organic way, which is the dividend they get on the securities they hold. Second is by the redemption of their shares by investors will be at a discount to the current NAVs (net asset values).

This logic has seen the mutual funds to be perceived as risk free investments in the market. Yes, this is not entirely untrue if one takes a look at performances of various mutual funds. This relative freedom from risk is in addition to a couple of advantages mutual funds carry with them. So, if you are a retail investor and planning an investment in securities, you will certainly want to consider the advantages of investing in mutual funds.
Lowest per unit investment in almost all the cases