Abstract Mutual Fund is an American Concept and the terms ‘Investment Trust’, ‘Investment Company’, ‘Mutual Fund’, ‘Money Fund’ etc are being used interchangeably in American Literature. Investment Company as defined in us Investment Company Act of 1940 is any issuer that is or holds out as being engaged primarily or proposes to engaged primarily in the business of investing, reinvesting or trading is securities is known as Mutual Fund Company. In British literature, Mutual Fund has not been explained, however, it is considered as a synonym of Investment Trust of the USA, similarly in India also Mutual Fund & Investment Trust is used as interchangeable terms. Key Words- Investment Trust, Investment Company, Similarly, Interchangeably, Primarily, Reinvesting.