What is the difference between Saving and Investment?

Saving is in our daily life generally means as putting money aside for rainy days. Just to keep money in bank or some where like soaks –. So it means you save particular amount of money for your future use. But if we consider saving with economic point of view than the definition is little changed. According to economics, saving is the personal disposable income minus personal consumption expenditure. It means the money which does not consumed immediately for buying goods. Or a part of income is saved. There is no risk factor involve.

As far as we are talking about investment than it is certain amount of money which is saved or use in some projects or certificates where we can take profit more than the money we have saved or invest. In general terms investment means the use of money to make more money. According to economics it is the production per unit time of goods are not consumed but use for future production. Example on purchase of saving certificate there we get certain interest value which is more than our saved amount. But in some cases if you purchase shares there always a risk factor involves. Because in that case we might get a loss on amount we invest.

What is mutual fund?

ABN Amro Asset Mgmt India, Benchmark MF, Birla Sun Life MF, BoB MF, Canbank MF, DBS Chola MF, Deutsche MF, DSP Merrill Lynch MF, Escorts MF, Fidelity Fund Management, Franklin Temtation MF, HDFC MF, HSBC MF, ICICI Prudential MF, ING Vysya MF, JM MF, Kotak Mahindra MF, LIC MF, Lotus India MF, Morgan Stanley MF, Principal MF, Quantum Asset Management, Reliance Capital MF, Sahara MF,SBI MF, Standard Chartered MF, Sundaram BNP Paribas MF, Tata MF, Taurus MF, UTI MF
In our life all of us save or invest for our future. Many use to save their savings at the bank in saving accounts for merely 6-7% interest annually while some invest in government bonds, policies, fixed deposits (rate of interest is higher than saving accounts) or other securities.
But persons who believe that risk taking are the key of money making, invest in stocks. Yes stocks in average give the higher return in comparison to other investments. But one fact is also that everybody doesn’t have the same time flexibility as well as right concept of the market. So a person who lacks one or both the factors may not invest in stocks! No it’s not like that, thanks to mutual funds. These investment vehicles don’t demand that you have a deep understanding of financial matters; they don’t even demand oodles of your time. The mantra of mutual fund is ‘strength works’. They collect money from a large group of investors, pool it together, and invest it in various securities, in line with their objective. They are an alternative to invest directly.
Thus a mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them.
Mutual fund offer several features that make a powerful and convenient wealth creation box worthy of your consideration. These are Small Investments they offer, Offer of Diversified portfolio, Professional management of our investment, Sharing or managing Liquidity, Tax saving or Tax break schemes etc.
AMFI, The Association of Mutual Funds in India is the association which look after the interest of both unit holders in funds as well promoting the interests of mutual funds: WEBSITE OF AMFI