Magnetic fluids are generating new hopes in medical field as a Carrier of medicine to human parts where surgery is not a better option. Here is a method to produce a magnetic fluid by simple technique. Take cadmium nitrate and ferric nitrate in a 2:1 weight ratio and mix it using 100 ml of distilled water. Keep the solution over a magnetic stirrer and heat it till boiling. Allow it to cool. Again heat till boiling and cool it. Repeat this process at least 10 times. Then filter the solution. Residue is dried and mixed with any alcohol. Ball mill this solution in high rpm for a few hours. Resultant fluid will be magnetic which can be used for surgical applications.