Mutual Funds collect money from several investors and all the money put together is then invested. Now, the investments are made based on the theme of the Mutual Fund. For example, large-cap Mutual Funds will only invest in large-cap stocks. So if you have put your money in a large-cap Mutual Fund, then you are aware of where your money is being invested.
When you invest regularly for a long period of time the benefits are magnified, thanks to the compounding effect. Simply put, your money grows over time as the the money you invest earns returns. And returns also earns returns.
No matter what your dreams are, A great place to start is with a systematic investment plan (SIP) that allows you to save a certain amount of money on a regular basis. With SIP you can invest a fixed amount in mutual funds,on frequencies like weekly, monthly or quarterly thus encouraging regular savings and also offer the benefits of power of compounding. It is easy to stay invested for a longer period of time to create wealth.