Credit card

 A  credit  card  is  a  small  plastic  card  measuring  about  85  mm  by  54  mm  bearing  the  name,  date, computer number and specimen signature of the holder and the validity with raised letters to facilitate machine readability  issued to users as a system of payment. It allows its holder  to buy  goods and services based on the holder's promise to pay for these goods and services. The issuer of the card creates a revolving account and grants a line of credit to the consumer (or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user. Usage of the term "credit card" to imply a credit card account is a metonym.

As per instruction given in the application form or later on in writing, the credit card issuing authority

will  dispatch  the  periodic  bill  to  the  card  holder  and  realize  the  bill  amount  from  his  account  as instructed earlier. In other way, the card holder may pay the periodic bill in cash or by cheque within specific period. If not paid within the grace free specific period, profit or interest or service charge on the bill amount will be charged before full payment of the bill amount.

Mutual fund

 A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests typically in investment securities (stocks, bonds, short-term money market instruments, other mutual funds, other securities, and/or commodities such as precious metals). The mutual fund will have a fund manager that trades (buys and sells) the fund's investments in accordance with the fund's investment objective. It is registered in Securities and Exchange Commission.

Mutual funds raise money by selling shares of the fund to the public, much like any other type of

company can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments.  In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities.

For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund.

Benefits of mutual funds include diversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment.

This is passive instruments having two forms namely open end mutual fund and close end mutual fund.

Closed End Mutual Fund:        The scheme size is fixed so that the asset manager (who manage mutual fund scheme) could not issue new instruments in the form of bonus or right.

Open End Mutual Fund:         The  scheme  size  is  not  fixed  so  that  the  asset  manager  could  extend scheme size by issuing new instruments in the form of bonus or right.

There  are  many  types  of  mutual  funds,  including  aggressive  growth  fund,  asset  allocation  fund, balanced fund, blend fund, bond fund, capital appreciation fund, clone fund, closed fund, crossover fund,  equity  fund,  fund  of funds,  global  fund,  growth  fund,  growth  and income  fund,  hedge  fund, income fund, index fund, international fund, money market fund, municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund.