Investment fund basics · Question 3 of 12

What advantage does an equity fund offer over buying a single share?

1 answer is correct. Easy

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Answer

  • D The money is spread across many companies

Explanation

Even with small amounts, a fund lets you invest in many companies. If one of them runs into difficulties, this has only a proportional effect. Market risk, i.e. falling prices across the entire stock market, remains.

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