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Why is it important to invest in more than one mutual fund and stock?

April 26, 2017Business Finance invest Investing mutual fund stock

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Why is it important to invest in more than one mutual fund and stock?

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Basically, it’s important because it reduces your risk. If you just invest in one stock, and that company goes bankrupt, you lose everything. But if you invest in 10 or 100 stocks, and one of those companies goes bankrupt, it won’t affect you as much.