Mutual funds give smaller investors the same ability to diversify and reduce risk as big investors with a great deal of money have.

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Mutual funds allow investors to pool their money together in order to invest in a diversified portfolio of stocks, bonds, or other securities. This provides smaller investors with access to a level of diversification and risk reduction that they may not be able to achieve on their own. Big investors with a great deal of money also benefit from mutual funds, but the key point is that mutual funds provide smaller investors with the same advantages.

Mutual Funds Give Smaller Investors the Same Ability to Diversify