Investors who have a limited amount of funds to invest and want to invest in a diversified portfolio should buy

Question

Quizplus · Accepted Answer

Mutual funds offer diversification by investing in a variety of stocks or bonds, which reduces the risk of any single investment dragging down the overall performance of the portfolio. Growth stocks may offer high potential returns, but they also come with higher risk. Real estate and GICs do not provide the same level of diversification as mutual funds in terms of industry sector and market cap.

Investors Who Have a Limited Amount of Funds to Invest