A(n)_____ allows for diversification by pooling the capital of many investors in order to purchase more securities and reduce the risk of the investment portfolio

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A mutual fund pools together the money of multiple investors in order to purchase a diversified portfolio of securities, which helps to reduce overall risk. This makes them a popular choice for those looking to invest in the stock market, but who may not have the expertise or resources to create a diversified portfolio on their own. While exchange traded securities and margin accounts can also help to diversify an investment portfolio, they each come with their own risks and complexities that make them less suitable for many investors. And while myIRA is a personal retirement account, it does not pool together investor capital or provide the same diversification benefits as a mutual fund.

A(n)_____ Allows for Diversification by Pooling the Capital of Many