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Investing in mutual funds allows an investor to achieve a greater level of diversification than could likely be achieved by investing in individual stock on
Investing in mutual funds allows an investor to achieve a greater level of diversification than could likely be achieved by investing in individual stock on ones own account. A single share of a mutual fund could represent ownership in over a thousand different companies. Whereas the investment in the mutual fund might cost one hundred dollars, buying over a thousand individual shares of stock could cost over one hundred thousand dollars. How are trading costs associated with mutual funds lower?
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