How to invest your money in Mutual funds :

This page is for layman user. This page tell why should one go for Mutual funds and why not. You may get better material than this. But i wrote this with my experience. Any comment on this is deeply appreciated.

What is mutual funds:
funds -> money/stock/security mutual ->feeling same
Mutual funds => its a financial intermediatary that allows a group of people to pool their money together within a predetermined investment objective. In very simple sense a expensive stocks will be brought by people by mutually investing their money.

Mutual Fund flow chart :


Why and why not :
should go:
1. Diversification
2. Professionally managed
3. Access to expensive stocks
shouldn't :
1. Cost associated with managing money ( like brokage charges, tax etc.)
2. No tailor made portfolios
3. Better oppurtunity

<--- You can get many more reasons, but this is from my experience --->

Types of Mutual funds :
By Structure :
1. Open Ended and Closed Ended
2. Load funds and No Load funds.
By Investement Objective:
1. Growth funds
2. Income funds
3. Balanced funds
4. Index Funds
5. Sectoral Funds
6. Tax planning funds

<--soon be explained these points with example --->