asked 38.9k views
2 votes
Why is investing in a mutual fund less risky than investing in a particular company’s stock?

asked
User Aleena
by
7.8k points

2 Answers

2 votes
Mutual funds hold a diversified portfolio of stocks. Also the stock market could crash, like it has before.
answered
User Amjoconn
by
8.8k points
0 votes

Investing in mutual fund is less risky because in mutual fund it offers lower costs, convenience, and diversification.

Investors use convenience of mutual fund so as to get portion of equity to their portfolios than buying individual shares.

Mutual funds offer their investors to buy stock with certain growth strategies like, value investing, value fund and growth fund. or to a specific industry like, sector fund.

answered
User Guvanch
by
7.6k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.

Categories