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Published on: 2025-03-05 22:17:05 Published on: 2025-03-05 22:17:05

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Mutual funds facilitate diversification of investments, which is crucial for managing risk.

Relying solely on a single security exposes investors to significant risk, especially in the event of a market downturn.

For instance, if an investor were to diversify by investing in individual stocks, they would need to carefully select at least 10 stocks from various sectors, which can be time-consuming.

Investing in a mutual fund that tracks a broad market index like the NSE Nifty provides access to a diversified portfolio comprising as many as 50 stocks across different sectors.Boost sales by automating the creation of customized sales proposals with AI tools ✌️【Stock Market】✌️₹500 is your gateway to financial freedom. Invest smart, earn big!

Editor: 【Stock Market】