Investing in a mutual fund is like an investment made by a collective. An individual as a single investor is likely to have lesser amount of money at disposal than say, a group of friends put together. Now, let's assume that this group of individuals is a novice in investing and so the group turns over the pooled funds to an expert to make their money work for them. This is what a professional Asset Management Company does for mutual funds. The capital appreciation realised through long-term investments are shared among unit holders in proportion to the number of units owned by them. Mutual funds are ideal and practical investment vehicle that offer investors opportunity to build their wealth through professional management of their investible savings.