Because a mutual fund is already diversified with perhaps 100 or more different investments, further diversification is not recommended or necessary.

Name: Because a mutual fund is already diversified with perhaps 100 or more different investments, further diversification is not recommended or necessary.
Brand: Quizplus
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Quizplus · Accepted Answer

While mutual funds offer diversification, further diversification across different asset classes, sectors, or geographical regions can help reduce risk and improve potential returns.

Because a Mutual Fund Is Already Diversified with Perhaps 100