Mutual Funds are actually investments that are made by the stakeholders and that which are professionally managed. Mutual Funds can be of three basis types, open ended, close ended as well as interval mutual funds.
Under the open ended mutual funds fall those that allow investors to buy as well as sell units at their own discretion such as debt/income scheme, money market/liquid scheme and equity/growth scheme.
Under the aegis of close ended mutual fund schemes fall those that have a stipulated maturity period, only after the completion of which these mutual funds can be withdrawn. Also investment in these sort of mutual funds can be done only during the starting period of the investment.