An ESOP (employee stock ownership plan) is generally more risky than retirement plans invested in diversified mutual funds.

Name: An ESOP (employee stock ownership plan) is generally more risky than retirement plans invested in diversified mutual funds.
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ESOPs concentrate an employee's retirement savings in the stock of a single company, which is riskier than diversified investments that spread risk across many assets, as found in mutual funds.

An ESOP (Employee Stock Ownership Plan) Is Generally More Risky