Mutual funds provide professional management and diversification that individual investors-especially those with limited resources-can rarely obtain on their own.

Question

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Mutual funds are managed by professional fund managers who have expertise and resources to do research, analysis, and make investment decisions. Also, mutual funds typically invest in a variety of securities, which helps to diversify the investment portfolio and reduce risk. Individual investors may not have the knowledge, time, or resources to manage their investment portfolio effectively and diversify it adequately.

Mutual Funds Provide Professional Management and Diversification That Individual Investors-Especially