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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.

For instance, if an investor were to diversify by investing in individual stocks, they would need to carefully select at least 10 stocks from various sectors, which can be time-consuming.

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.How to Build Wealth by Investing in Property Management Businesses ✌️【Remote Work】✌️Start with ₹500 and grow your wealth using AI-powered investment strategies.