The feature of a mutual fund, where it spreads the investment in varied stocks and sectors by pooling the funds of various investors, is called as ______________.

Name: The feature of a mutual fund, where it spreads the investment in varied stocks and sectors by pooling the funds of various investors, is called as ______________.
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Question

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Diversification is the strategy of spreading investments across various stocks and sectors to reduce risk, which is a key feature of mutual funds.

The Feature of a Mutual Fund, Where It Spreads the Investment