What is the difference between Mutual fund and Investment banking?
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A mutual fund is something individuals and money managers buy to invest their money.\n\nInvestment banking is class of services provided by banks and large financial institutions primarily to corporations.\n\nThese aren't the same type of thing and cannot be compared in any way.
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In simplest terms, mutual funds are just groups of investments. They can be stocks, or bonds, or a combination of the two. They can even be investments in real estate (REITs).\n\nIn an active mutual fund, a fund manager decides what to purchase for the fund. In a stock fund, the manager picks the stocks to buy in hopes that the stocks will go up. In bond fund, he picks bonds. In some funds, the manager has the option of choosing between both stock and bonds. He may even decide buy nothing if he can't find anything worth buying, keeping cash on hand until he finds something worthwhile to buy.\n\nIn an index fund, a fund manager's main job is just to buy the stocks or bonds in an index. For example, in an S&P 500 stock fund, the manager's job is to buy all the stocks in S&P 500 and hold them.
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In it's most basic form, a bank is started by investors who put money into the business.  Using this money, the bank makes loans and charges interest so they get back the money they lend and more.  Dividends can then be paid to the investors.  All the services of a bank are used to make more money.  For instance, you open a savings account and put money in the bank.  The bank pays you, say, 2% interest on your money.  The bank can now lend your money out for, say, 10% interest so they make money on your money.  This was a good question.
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A financial advisor gives you stock IRA advice and such (they actually need a lot of credentials).  A personal banker is a glorified teller/new account sales person.
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In Share market you are directly buying shares (stocks) of a particular company and you become the stock holder.\n\nIn Mutual Funds you are giving the money to a fund company and they are investing on your behalf. In this case you are not issued any share but you are issued units which you can track through the Fund Company's NAV. Secondly mutual fund companies invest in different companies and are not just limited to one single comapny so the risk amount is quite less.
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From my experience, finance career is more lucrative. If you are an MBA, take the investment banking path. It pays the most.
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A Commercial bank issues loans and conducts personal wealth management sometimes. Depending on the laws of different countries, you may only be able to deposit money to a commercial bank.\n\nA Commerical bank profits mostly from the interest differences and service charges.\n\nNon-bank financial institutions are typically investment banks and funds. Investment banks are agents that conducts stock offering sponsorship, debt offering sponsorship, merger and acquision, financial advising, and etc. Funds include venture capital funds, which invests in the equities of early stage companies, growth fund, which invests after venture capitalists, financial funds, which invests in the equities of pre-IPO firms, and other funds such as pension funds, insurace funds, and mutual funds which invest in stocks, bonds, and government securities.\n\nInvesetment banks profits from fees they charge and the underwriting spreads.\n\nFunds profits from captial gains, dividents, and debt interest.
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mutual fund, in finance, investment company or trust that has a very fluid capital stock. It is unique in that at any time it can sell or redeem any of its outstanding shares at net asset value (i.e., the price of a share equals total assets minus liabilities divided by the total number of shares). A mutual fund, also called an open-end investment company, owns the securities of several corporations and receives dividends on the shares that it holds. A closed-end investment company differs from an open-end company in that the number of shares is limited and the price of the shares may fluctuate above and below the net asset value. The earnings of a mutual fund are distributed to the holders of its shares. It is hoped that a loss on one holding will be made up by a gain on another. The holders of mutual-fund shares thus gain the advantage of diversification, which might ordinarily be beyond their means. Common mutual funds, which often provide skilled management for security holdings, include stock, bond, balanced, index, and money-market funds. Stock funds mainly invest in common shares, and bond funds in bonds; such funds may specialize in a particular category of stocks or bonds (such as Internet stocks or municipal bonds). A balanced fund might invest in preferred stocks and bonds in addition to common stocks. Index funds invest in a portfolio that mimics a given index, such as the stocks that make up the S&P 500. The forerunner of the modern mutual fund was established in Belgium in 1822, and the use of these closed-end investment companies soon spread to Great Britain and France. They became popular in the United States in the 1920s, but from the 1930s the open-end mutual fund became more popular. Mutual funds experienced a period of tremendous growth after World War II, especially in the 1980s and 90s.
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If you are from India, check out the  link below. \n\nBasically, they are a pooling of investors that would rather have someone else do their investing for them.  They give their money to a mutual fund manager and the manager does the investing. For a fee, of course.  There are all types of mutual funds. Ones that invest in growth stocks, ones that invest in bonds, ones that invest in undervalued stocks, ones that invest in foreign stocks, and relatively new, ones that invest in a market average.  The last came about because mutual funds in general--70%--could not get a better return than the market in general. \n\nThat does not mean that all mutual funds are bad. But is does mean that you have to do your home work before buying one.  You can get your money back by just giving them a phone call or sending a request over the internet. Some mutual funds are sold by stock brokers and the funds are held by the broker and you sell them by calling the broker.  Every year at year end the mutual fund distributes the money that they realized on their investments.  That has pluses and minuses.  The plus is that you get the money. The minus is that you have to pay taxes on it. The index funds do not distribute so much because they do not sell their investments so often. So they are an advantage in that respect.
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Finance management (FM) is a vast field & in this field also the ones that you have mentioned are very broad in scope. For the Indian economy all the fields that you have mentioned are currenlty in demand & have a very good scope. So you should take your decision based on what liking you have. Your inclination to the subject is more important than the scope. Investment banking is a 24 hours job, you have to be on your toes for full time. Its not a 9 to 5 activity. Even on holidays you have to be aware of what is happening in investment markets & that too not just national but international as well. Equities is restricted if you are talking about only new issues and compliances. It will be more procedural this way. Corporate finance again combines procedural and legal knowledge of raising funds for a company. This is a more restricted field requiring knowledge of various sources of finance and procedures associated. Mutual funds employ investment bankers and other jobs are procedural and regulatory in fund houses. Insurance is a mix of financial marketing and regulatory / legal knowledge.\n\nBased on above you should choose a field for which you have liking. All are equally remunerative but differ in terms of knowledge required and skills used.\n\nGo ahead and all the best !
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ADVANTAGES\n\nWhat are the key advantages of mutual fund investing?\n\nDiversification\n\nUsing mutual funds can help an investor diversify their portfolio with a minimum investment.  When investing in a single fund, an investor  is actually investing in numerous securities.  Spreading your investment across a range of securities can help to reduce risk.  A stock mutual fund, for example, invests in many stocks - hundreds or even thousands.  This minimizes the risk attributed to a concentrated position.  If a few securities in the mutual fund lose value or become worthless, the loss maybe offset by other securities that appreciate in value.  Further diversification can be achieved by investing in multiple funds which invest in different sectors or categories.  This helps to reduce the risk associated with a specific industry or category.  Diversification may help to reduce risk but will never completely eliminate it.  It is possible to lose all or part of your investment.\n\n Professional Management:\n\nMutual funds are managed and supervised by investment professionals.  As per the stated objectives set forth in the prospectus, along with prevailing market conditions and other factors, the mutual fund manager will decide when to buy or sell securities.  This eliminates the investor of the difficult task of trying to time the market.  Furthermore, mutual funds can eliminate the cost an investor would incur when proper due diligence is given to researching securities.  This cost of managing numerous securities is dispersed among all the investors according to the amount of shares they own with a fraction of each dollar invested used to cover the expenses of the fund.  What does this mean?  Fund managers have more money to research more securities more in depth than the average investor.  \n\nConvenience:\n\nWith most mutual funds, buying and selling shares, changing distribution options, and obtaining information can be accomplished conveniently by telephone, by mail, or online.\n\nAlthough a fund's shareholder is relieved of the day-to-day tasks involved in researching, buying, and selling securities, an investor will still need to evaluate a mutual fund based on investment goals and risk tolerance before making a purchase decision.  Investors should always read the prospectus carefully before investing in any mutual fund.\n\nLiquidity:\n\nMutual fund shares are liquid and orders to buy or sell are placed during market hours.  However, orders are not executed until the close of business when the NAV (Net Average Value) of the fund can be determined.  Fees or commissions may or may not be applicable.  Fees and commissions are determined by the specific fund and the institution that executes the order.\n\nMinimum Initial Investment:\n\nMost funds have a minimum initial purchase of $2,500 but some are as low as $1,000.  If you purchase a mutual fund in an IRA, the minimum initial purchase requirement tends to be lower.  You can buy some funds for as little as $50 per month if you agree to dollar-cost average, or invest a certain dollar amount each month or quarter.\n\n \n\nDISADVANTAGES \n\nRisks and Costs:\n\nChanging market conditions can create fluctuations in the value of a mutual fund investment.\n\nThere are fees and expenses associated with investing in mutual funds that do not usually occur when purchasing individual securities directly.\n\nAs with any type of investment, there are drawbacks associated with mutual funds. \n\nNo Guarantees.  The value of your mutual fund investment, unlike a bank deposit, could fall and be worth less than the principle initially invested. And, while a money market fund seeks a stable share price, its yield fluctuates, unlike a certificate of deposit. In addition, mutual funds are not insured or guaranteed by an agency of the U.S. government.  Bond funds, unlike purchasing a bond directly, will not re-pay the principle at a set point in time. \n\nThe Diversification "Penalty."
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The funding is easy enough to explain. You borrow the money from your stock broker or a bank using your securities as collateral. If you borrow from a bank, the bank lends you the money that they in tern have borrowed elsewhere at a lower rate. The same answer applies if you borrow from your stock broker. The stock broker is either lending you the money from cash that is on deposit from client accounts or from money that it has in turn borrowed at a lower rate from a bank.
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There are several types of Mutual Funds:\n\nSector-based: These invest only in a particular sector Eg. IT, Telecom, Petrochemical, etc\n\nIndex-based: These invest only in the Index i.e. BSE Sensex, NSE Sensex. Their valuation is based on the value of the Index and not directly on any particular share.\n\nGrowth-fund:They generally invest in equity across sectors and try to maximise their gain wherever possible.\n\nMid-cap/ Small-cap Fund: They invest only in mid-cap or small-cap companies. Though the returns can be very high, so are the risks.\n\nBalance Fund: They invest both in debt and equity so as to provide good growth through equity and safety but low returns through debt.
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Investment banks do business in areas such as merger and acquisition, underwriting for IPOs, security sales and trading, equity research, etc. Basically they do banking for business, as opposed to regular banks which do business in savings and loans for average consumers.
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Investment Banking can be very high paying, if you can make it.  Very competitive.  It takes a lot of hard work and some luck to get deals done.  Being smart and having a good financial education is just part of it.  You have to be able to find and land the deals that get done.  It is profession where you chase a lot of dead ends to find the one good thing.  It is high paying but not for everyone.
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Since the term "investment company" refers specifically to mutual funds and unit investment trusts under SEC guidelines, more than likely you're speaking about closed-end mutual funds.\n\nClosed end mutual funds trade on exchanges for a commission, not entirely unlike an ETF.  They can trade at a premium or a discount to NAV, and in broadly general terms, can be more volatile than open-end funds.\n\nMost major fund families have at least some closed-end fund offerings, but not all.
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Since every individual cannot become expert for trading in stock market and making large money due to lack of time and expertise.Due to this limitation the concept of Mutual Fund (MF) has come into picture.\n\nMF is a trust created by a trustee. For eg. In india Reliance Mutual fund is created by Reliance Capital who is a trustee. That MF collects funds from retail individuals and invest in the market. For doing this MF hires Fund Managers called FMC. They are group of experts who form a company and render services to any individual MF. They will be paid for their services. And when the retail investor request for redemption of funds. The MF sells the shares to that extent and return the money to the individual. The valuation is based on NAV (Net Asset Value). This figure is calculated everyday on the basis of the value of whole portfolio at the end of everyday. So the day when you invest the money will be converted to units (not shares) at that day's NAV and then when you sell those units will be muntiplied by the NAV on selling day and gives you money back. \n\nHope I am clear and elaborate enough.