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Topic: Business
Number of pages / Number of words: 14 / 3852
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Diversification

A crucial element in investing is asset allocation. It significantly contributes to the success of any portfolio. However, small investors do not have enough money to properly allocate their assets. By pooling your funds with others, you can quickly benefit from greater diversification...


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Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund unit-holders can benefit from diversification techniques, which are usually available only to investors wealthy enough to buy significant positions in a wide variety of securities...


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