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Benefits of mutual funds: #2 Diversification

Benefits of mutual funds: #2 Diversification

Saturday, May 13, 2017, 3:58 PM

Diversification lowers your risk of loss by spreading your money across various industries and geographic regions. It is a rare occasion when all stocks decline at the same time and in the same proportion. Sector funds spread your investment across only one industry so they are less diversified and therefore generally more volatile.
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