1) You have a sum of money but you do not want to deposit into banks due to unexpected rate.
2) You want to invest in some channel for higher profit.
3) You hope to earn money from markets.
4) You are ready to face with risks if earnings are high enough.
MUTUAL FUND is really a good destination where you put your belief and money on. It is usually operated by an investing company for mobilization. Typical forms are stocks, bonds, option contract, goods, or money market instruments.
There are 3 kinds of mutual fund:
1) Stock fund: portfolio of investment on stocks only.
2) Bond fund: investment portfolio on corporate and government bonds.
3) Money market fund.