Does a mutual fund help in diversification?

Diversification requires the presence of different investments so that the risk is spread out.

A proper diversification of the portfolio requires a large amount of money when done by an individual on their own.

A mutual fund is a portfolio of investments.

This ensures that the benefit of diversification is automatic when a mutual fund is bought.

A mutual fund will only help in part diversification as a specific fund is focused on a specific area or asset.

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