When investing money there will always be risks, as in financing studies point out there is risk/return tradeoff. Defined as, “the principle that potential return rises with an increase in risk. Low levels of uncertainty (low-risk) are associated with low potential returns, whereas high levels of uncertainty (high-risk) are associated with high potential returns.”(Investopedia, n.d) The diversification of risk gave birth to the phenomenon called Mutual Fund. One of the major risks in financing and accounting is mutual funds, and micro financing. Where micro financing lies is its ability to lend money to the poor in order to help them better their situation, by encouraging them to put it towards a business venture or new ideas. It is a phenomenon that is seen across the world, helping the poorest countries including India, Mexico, Nigeria, and other countries. The purpose of this paper is to answer the question of what is micro finance role in mutual roles, and why it works. While answer the central question, also investigate why the United States there is no mutual funds-microfinance. In understanding micro financing, a clear understanding of mutual funds is needed.