Why Mutual Funds Should Be in Every Portfolio
Mutual funds offer instant diversification, a cornerstone of risk management in investment portfolios. By pooling capital from multiple investors, these funds spread exposure across a broad range of securities—stocks, bonds, and money market instruments—reducing the impact of any single asset’s underperformance.
The collective investment model eliminates the need for individual stock selection, providing access to a pre-constructed basket of assets. This approach is particularly valuable for investors seeking to mitigate concentration risk without the complexity of building a diversified portfolio from scratch.