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Why is investing in a mutual fund less risky than investing in a particular company’s stock?

User Aleena
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Mutual funds hold a diversified portfolio of stocks. Also the stock market could crash, like it has before.
User Amjoconn
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Investing in mutual fund is less risky because in mutual fund it offers lower costs, convenience, and diversification.

Investors use convenience of mutual fund so as to get portion of equity to their portfolios than buying individual shares.

Mutual funds offer their investors to buy stock with certain growth strategies like, value investing, value fund and growth fund. or to a specific industry like, sector fund.

User Guvanch
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