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This provides professionally handled money and pooled risk. There are more than 8,000 different mutual funds, with more than 88 million households owning shares of one or more.
Mutual funds pool investments by individual investors and use the funds to accommodate financing needs of governments and corporations in the primary markets. Investments in securities in the secondary markets are made as well. Mutual funds are used both by governments and corporations that need funding, which gives small investors a place to invest their money.
Small investors have limited funds to invest, so mutual funds provide an easier way for them to diversify their investments...
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