A mutual fund is basically the money collected by investors and invest the same with the help of experts. Many investors invest the money to different funds as per their future requirement.
A person can invest the money through Direct funds or through Brokers/Banks. There are many funds in the market where an investor can invest money as per choice.
Some are mentioned below:
1) Debt funds
2) Balanced funds
3) Index funds
4) ELSS funds etc..
Also, there is an option of investing Mutual funds through SIP. Here a small amount of fund is invested every month and accordingly units are given to investor.
It's always preferable to invest money through SIP as per volatile market conditions. Also, Mutual funds are open and closed-ended. Open-ended mutual funds are kept for longer time and can be sold anytime after lock-in period. In the case of closed-ended, there is a specific period mentioned after which fund gets closed and as per the NAV price & units amount is paid to the investor.