When you invest ₹10,000 in a fund, you are issued units. If the fund's price per unit (its NAV) is ₹50 that day, you receive 200 units. From then on your investment is worth 200 times whatever the NAV is on any given day.
Your ₹10,000 joins everyone else's money and is invested according to the fund's stated mandate. A large cap equity fund must buy large listed companies. A liquid fund must hold very short-term debt. The mandate is written down in the scheme document, and the fund manager cannot wander outside it.
When you want your money back, you redeem units. The fund pays you the current NAV multiplied by the units you sell, minus any exit load that applies. For most equity funds the money reaches your bank in two to three working days; for liquid funds, usually the next working day.
You own units, not rupees. Watch the number of units, not the daily price.