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Are investment funds risky?

April 26, 2017funds Investment risky

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Are investment funds risky?

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Funds range from conservative money market funds to more aggressive equity funds. By nature, investment funds are effective in spreading risk as the investors’ money is pooled into a collective vehicle and invested into various securities. Funds authorised by financial authorities follow strict diversification guidelines, which normally restrict investments in any one security. An average equity fund will own between 80 to 100 stocks.