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Published on: 2025-02-01 19:46:45 Published on: 2025-02-01 19:46:45

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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.finance how to experts passive income ✌️【Career Goals】✌️Start investing with just ₹500. Leverage AI tools for smart decisions and maximize your profits. Join now!

Editor: 【Career Goals】