Mutual funds are the funds collected from a pool of investors that invests in assets like shares and bonds later. Asset Management Companies (AMCs) handle mutual funds in India. These AMCs provide fund managers to the investors, who take decisions on their behalf. Each AMC has several mutual fund schemes under them. 

Why opt for mutual funds?

• You can buy and sell funds on any business day. They are different than fixed deposits, PPF or insurance plans
• Mutual funds give exposure to an array of shares and bonds, that too at a low cost. If you wish to purchase them directly, you would have to pay a lump sum amount
• Mutual fund expenses are usually 1.5 to 2.5 per cent of your investment. These expenses comprise of your fund administration, fund manager charges and other such costs
• Mutual funds have a parent body who supervise them – the Securities and Exchange Board of India (SEBI). This entity discloses the mutual funds' Net Asset Value (NAV), portfolio, and various other details frequently to the public domain

The top-performing mutual funds in India are UTI MNC, Reliance, HDFC Cash Management, DSP Blackrock, SBI, Angel BEE and others.