what are the mutual funds and how to invest them

mutual funds are the companies which collects money and manage money to invest in stock markets,other mutual funds govenment bonds etc.they are managed by experienced financial experts.
mutual funds can be classified on the three following basises.
by structure

by investment objectives

some special schemes

on the basis of structure classifications they are in three schemes
1-open ended

2-closed ended

3-interval schemes

on the basis of investment objectives they are four types
1-growth

2-income

3-money market

4-balanced schemes

while other schemes covers

1-tax saving schemes

2-index schemes

3-sector specific schemes

investment in mutual fund becomes very easy if you are having a demat account.in this case you would not need to have physical documents as yours demat account is the perfect id for such transactions.they are so many banks and investment comapnies that avail yourself a demat account on very marginal charges.