The magnetic and hydrodynamic properties of magnetic fluid depend on the micro behavior of the particles in the media. In this paper, we discuss the relaxation mechanism of Mn-Zn and cobalt: ferrite particles in kerosene based magnetic fluid by measuring the initial susceptibilities in the temperature range of 83-293K. The Mn-Zn ferrite magnetic fluid was found to consist almost only of superparamagnetic(SP) particles, where as the cobalt ferrite magnetic fluid consists mostly of non-SP particles that relax through Brownian rotation for fields less than 440 Oe and influence the magnetic and hydrodynamic properties of the fluid.