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Published on: 2024-12-27 20:13:19 Published on: 2024-12-27 20:13:19

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Mutual funds facilitate diversification of investments, which is crucial for managing risk.

Relying solely on a single security exposes investors to significant risk, especially in the event of a market downturn.

For instance, if an investor were to diversify by investing in individual stocks, they would need to carefully select at least 10 stocks from various sectors, which can be time-consuming.

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