Personal Finance: Mutual Funds — Flashcards | Financial Literacy | FatSkills

Personal Finance: Mutual Funds — Flashcards

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Why Invest in Mutual Funds?
A mutual fund provides diversification through exposure to a multitude of stocks. The reason that owning shares in a mutual fund is recommended over owning a single stock is that an individual stock carries more risk than a mutual fund. 
 

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Mutual funds provide an inexpensive way for investors to diversify and gain access to professional management.
True
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