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Mutual funds facilitate diversification of investments, which is crucial for managing risk.

Relying solely on a single security exposes investors to significant risk, especially in the event of a market downturn.

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Investing in a mutual fund that tracks a broad market index like the NSE Nifty provides access to a diversified portfolio comprising as many as 50 stocks across different sectors.blockchain digital rupee Seasonal Part-Time Jobs: Quick Earning