Investment in Mutual Funds

A software engineer makes investment in Mutual Fund during year 2007-08 for more than Rs. 200000.

Does he needs to make disclosure for the same in ITR?

Is this investment would be taxable if redeemed during the year?

What if this investment is made in SIP of various MF?

What is the taxability of dividend earned on this investment; if some of the investment made is not in tax saver schemes of mutual funds?