What is Mutual funds? How can I earn from It? I want to invest Rs. 10000. Where I can start?

I want to invest 10000/- in Mutual funds. Kindly please tell me what is mutual funds and how can I invest in it. Please tell me the step by step procedure for documents required and from where to start.
How and when I have to pay 10000/- or if there is any other option available. and also tell me how can I earn from mutual funds.
Serious Answers Please.......................

For 10,000/- you can invest in any MF scheme - like SBI Contra,Birla,..
If you are looking for Tax savings also , You can invest in SBI Tax Advantage Fund or other tax relief funds. It has 3 year Lock in period.

You can call any of the agents or better you can directly go to their Offices and fill up the form apply for it.
You need to have PAN card or Form60 for applying for MF.

The money will be invested in Sg=hare market and others by proffessional taem and the profit(or loss will be shared with you.)

You can go for Divident option or Growth option. since the amount is small go for growth option. If you want money on profits as divident take divident scheme.

A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings.

I have heard Vanguard has very low fee's for their mutual funds btw..

Your first option should be to fund fully a retirement account. If you do this, and you have extra cash, then one of the best things you can do is open a DRIP Plan.

Go to : low-cost-stock-recommendations

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Click on the "DRIP's" Button on the Navigation Bar

These powerful investment plans are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.

They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down. They are a must for any serious investor.

If you decide you are interested in DRIP Plans, click on the advertisement on the same page "$4 to purchase stocks". This will answer your next question, which is, How do I get started? and what is the least expensive way to get started?

I strongly recommend looking into it. They are great plans.

Good Luck

A Mutual fund is a fund managed by collecting capital from the public. This capital is then invested in different instruments by the fund manager according to the scheme of the Fund. Then the profits earned from this will be distributed as dividends to all the investors who have put capital in the fund.
You can go in for Equity based funds which give good returns . But beware that they are involved with high risks.