A Mutual Fund is not an alternative investment option to stocks and bonds, rather it pools the money of several investors and invests this in stocks, bonds, money market instruments and other types of securities. Investors can be categorized into three types namely, a conservative investor, a moderately aggressive investor, and aggressive investor. Indian equity investors, particularly those investing through Mutual Funds, are known to be notoriously fickle and impatient. Today there are 42 Mutual Fund Companies operated in India. This paper is presented regarding the perception of Indian investors in Mutual Funds and also the reasons why should investor invest only in Mutual Fund and also the risks involved in Mutual Funds. The researcher here, depends on secondary data of research methodology.

KEYWORDS: Mutual Fund, stocks, bonds, money market, SEBI, returns, risks.