when a person invests in the market he has to counter the 
risk of the market by diversifying his portfoilo that is he 
has has to brought the shares from different industries so 
that if the share of one industry goes down then the shares 
of other industry might goes up and he doesnt looses all 
his money. this process of selecting the shares is known as 
risk diversification. For this he has to purchase many 
shares that requires a lot of money. But what to do when 
you have not enough amount of money to diversify the risk? 
the answer is Invest in mutual funds. Many small investors 
invest a small amount of money in a particular mutual fund 
via mutual fund houses. Small amount of money from many 
investors results into a chunk of money ready for 
investment in market and also with risk diversification. 
This money is invested under the guidance of market expert 
known as Fund Manager. The total amount of money for a 
particular fund is known as Net assets and the value goes 
to crores of Rupees. Thus the mutual funds are the route 
for small investors to play in the share market by 
diversifying the risk.