The primary advantage gained by purchasing a mutual fund rather than an individual stock is

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The primary advantage of purchasing a mutual fund rather than an individual stock is diversification. By investing in a mutual fund, an individual can gain exposure to a portfolio of stocks, bonds, or other assets, reducing their overall risk by spreading their investment across many different companies and industries. This can help balance out losses from any one investment and potentially lead to more consistent returns over time. Deposit insurance, increased risk and return, and uniformly lower brokerage fees are not primary advantages of purchasing a mutual fund.

The Primary Advantage Gained by Purchasing a Mutual Fund Rather