asked 153k views
3 votes
How does a mutual fund help reduce risk?

asked
User Hung Vu
by
9.0k points

1 Answer

2 votes

Answer:

Mutual funds reduce risk through portfolio diversification. ... Through increasing an investor's return on investment, which reduces the risk an investor would have to bear. e. By being more liquid than traditional stocks, mutual funds reduce risk.

Step-by-step explanation:

I hope this helps :)

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.