Mutual Fund is one of the financial instruments in capital market, here the study based on the empirical investigation on the investment strategies and performance of Mutual Fund schemes, main purpose of the study is to identify that what are the investment strategies of selected schemes and which schemes provided highest return and minimize the risk. Research need because of the capital market is unexpected volatility and some time reaction was positive and negative. Good and bad news affects price movement, that needs to identify how much market or bench mark provided return. Investors need to keep watch on investment strategies of schemes and identify trade - off return and risk. The year 2009 had unprecedented global liquidity crisis that led to a share slowdown in growth. The industrial growth index was zero. Time valuations are attractive for investment decision and strategies for active diversification of portfolio. March 2009 sensex and Nifty down by 37% & 36 % respectively. Mutual fund industry has been affected by stock market movements. Mutual fund increased their stock/scrip fund holding from 4.1% to 21.2% of the total market capitalization.