In today’s competitive era every individual tries to secure their future, as they understand the importance of Financial Planning.Every rational individual keeps on searching for new investment avenues so that they can grow their money and at the same time ensuring that their money is in safe hands.Mutual Funds are a good option for such category of individuals.But there are so many mutual funds in the market,how should a customer choose the best among all.This Paper focuses on understanding the functioning of mutual funds and benefits of mutual funds to investors. It also helps in understanding different schemes of prominent funds in India such as equity, income, balance as well as the returns associated with those schemes.The study was done to ascertain the asset allocation, entry load, exit load, associated with the mutual funds.