Mutual funds are collective investments by different people in stocks, bonds, real estate, foreign exchange and other profit generating activities. The funds are managed by a central body appointed by the government and the individual accounts are managed by portfolio managers. The mutual funds portfolio managers assess the viability of the investment opportunities hence goes on to invest. All gains are remitted to the contributors accounts and are due for collection when the stipulated date arrives. In this section we have explained the mutual funds operations in depth so that all workers can know what it is and differentiate it from taxes. They come to understand that their contributions give them a right of ownership of the investment projects than the mutual funds’ company or firm. Most of the mutual funds firms in the world are directly owned and ran by the governments due to the large sums of money received from almost all registered workers.