Financial markets are the backbone of every economy. The booming Indian financial market has a lot to do with the booming Indian economy. One of the important functions of the financial market is to turn the savings of the people into investments in corporate. In India the emergence of an array of savings and investment options and the dramatic increase in the secondary market for financial assets in the recent years has opened so many new avenues. The Indian mutual fund industry has marched in step with the country?s booming capital market. In recent years mutual funds have emerged as long term saving vehicle for retail investors. Mutual funds are the best option for an individual who does not have time, knowledge, experience in market etc. Mutual funds have come, as a much needed help to these investors.