Mutual funds are a good and relatively inexpensive way for individual investors to diversify.

Question

Quizplus · Accepted Answer

Mutual funds pool money from multiple investors and use it to purchase a diversified portfolio of stocks, bonds or other securities. This allows individual investors to own a portion of a diversified portfolio that they may not be able to afford on their own. Additionally, mutual funds typically have lower expense ratios compared to actively managed portfolios, making them a cost-effective way to invest. Therefore, mutual funds are considered a good and relatively inexpensive way for individual investors to diversify.

Mutual Funds Are a Good and Relatively Inexpensive Way for Individual