Mutual Fund investment in India is a pick up. Mutual funds are collective investment schemes that clubs money from investors and invest in securities like stocks and money market instruments. For investment in Mutual Fund, there are a number of mutual funds in the country, both domestic as well as international players.

One of the most important reasons why mutual fund investment is preferred investment tool in India is because they offer the investors the ability to easily invest in complex markets. According to a survey, mutual fund investment in India constituted around 40 per cent of stock investment plan in 2007. But these are certainly bad times even for mutual fund investors. The worst sufferers in the present market are those funds that have investment portfolios of small and mid-cap stocks. Moreover, tax-saving mutual funds too have performed badly with Principal Personal Tax saver witnessing losses of 80 per cent from its high.

Investors looking for impressive returns from mutual fund investment in India are also disappointed by balanced funds (having equity exposure of around 65-75%). Balanced funds invest both in stocks and fixed income securities as per the prescribed proportion in their offer documents. For the four-month period (July-October), there has been 30 per cent drop in values of average balanced funds.