The competitive landscape's of the Mutal fund industry has undergone a tremendous advancement in recent years. Mutual Fund houses compete with one another either by satisfying different economic function or by introducing a low-cost or a differentiated product. Mutual fund in india have confined its reach to urban areas leaving vast saving potentials in rural areas untapped. Due to lack of awareness, inferior distribution and limited banking services in the rural regions, mutual funds are yet to again significant recognition and acceptance in the rural markets. It has become increasingly importance for the distriibutor to spread financial literacy among the investor community as they depend hugely on volumes generated, and this can only happen, when investors are assured that investing in mutual funds yield realistic returns vis a vis the risk, and the ticket size of the investment is manageable. The abolition of entry load from August 2009, criticized by some brought benefits to investors. Recently mutual fund companies are initiating different steps through financial inclusion. Thus helping in promotion of investment behaviour by spreading awarness among prospective customers in urban and rural areas. Mutual funds in India have been quite wrongly promoted as alternative to equity investing thus creating very high expectations in the mind of investors. Indian Mutual funds have remained focused around a limited renge of products. Efforts to development and expand the market through innovative products have been negligible. This may be attributed to the funds inability to take risks and to predict the future development in the market. Therefore the spread of Mutual Fund market has been limited. The absence of product diversification and confusion in the market has been enlarged by the lack of innovative marketing network for Mutual Funds. The agent-oriented network has largely been a failure beacuse most of the agents are not specifically trained to sell Mutual Fund products. The Indian mutual fund industry has not performed well in gaining the small individual investor confidence and better products, better processes, and better services, Mutual Fund are popular mainly with the urban, high, and middle income groups only. They are yet to penetrate the rural areas and semi urban areas in a substantial manner, many investors have low opinion about the investment efficiency and the assured return of mutual funds. They do not have a good set-up to reach the retail and to collect money from small towns. This book is written in well organized and lucid manner highlighting the basic concept of Mutual Fund, its operational policies, role of regulator Securities and Exchange Board of India, major issues involved since the inception of this concept and the opportunities and challenges ahead in this sector. This book is also an attempt to analyse and discuss the latest development in Mutual fund marketing and the importance of Financial Inclusion. Financial Inclusion plays a crucial role to increase the awarness about the concept of Mutual Fund in urban, semi urban and rural areas. This book is intended for students of Management, Policy Makers, Market Regulators and potential investors. This book is an extension of my Ph.D. Thes is work. The outcomes and the conclusions are based on my thesis submitted successfully from Kumaun University, National in March, 2012.