This document discusses mutual funds and their types. It defines a mutual fund as a trust that pools together savings from investors who share common financial goals. Money is invested in instruments like shares and debentures. Funds are classified as open-ended or close-ended based on their maturity period. They are also classified as growth, income, balanced, money market or gilt funds based on their investment objectives. The advantages of mutual funds include professional management, risk minimization, return potential, low costs and liquidity.