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

In the mutual fund, the money is used to invest in different securities which lowers the risk of losing the money.

Explanation:

A mutual fund is an investment fund that takes the money from many investors to purchase different securities like bonds, stocks and debt. As the fund invest in different things, the risk of losing your money is less than investing in a particular company's stock where you can lose money if the price goes down.

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