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Mutual Funds are a great way to invest in the stock market, while generally minimizing the risks normally associated with a portfolio containing individual stocks. A Mutual Fund is an investment company that combines the money of many investors ("shareholders") who have similar investment objectives.
Mutual Fund assets are typically invested in dozens of different securities, and through broad diversification, can provide the potential of consistent returns over the long term. Most fund portfolios are diverse, and generally categorize their individual investments by the company's type of industry or geographic location.
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