The most important advantage of a mutual fund is pooled diversification.

Name: The most important advantage of a mutual fund is pooled diversification.
Brand: Quizplus
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Quizplus · Accepted Answer

A mutual fund pools money from many investors and invests in a diversified portfolio of stocks, bonds, or other securities. This diversification helps to spread risk and potentially lower overall investment risk. Therefore, pooled diversification is considered the most important advantage of a mutual fund.

The Most Important Advantage of a Mutual Fund Is Pooled