This essay "Changing Environment in Financial Market and Understanding of Fund" illustrates an overview of changing environment of financial market and describes general contents of fund which is in the center of recently shifting financial market. First, regarding changing environment in financial market, the essay describes current status and changing environment of financial industry, financial business law and financial products and services. That is because in order to understand asset management business and the industry`s representative financial vehicle the "fund," which is regulated by "Indirect Investment Asset Management Business Act" preliminary comprehension of financial business and financial products and services are required. It also adds the relationship between asset management business and investment bank business, the industries that are growing rapidly worldwide under the solid support of government and financial institutions. This paper also gives an overview of globally circulating variety of funds and their present condition and status, then moves onto details of Korean fund market. In order to better understand different category of funds, the paper gives an overview of various funds categorized under current "Indirect Investment Asset Management Business Act" and goes into details of financial investment products and collective investment vehicle regulated by "Capital Market and Financial Investment Business Act(Capital Market Consolidation Act)" which is set to be launched soon. The paper also adds explanation of Private Equity Fund(PEF) and Hedge Fund in pursuit of searching for efficient development model suitable in Korean PEF market and offers positive direction to soon to be implemented Hedge Fund. Lastly, it examines the effect and impact of "Capital Market and Financial Investment Business Act" to the market once it is implemented and offers advice to further improve Korean fund market.