Why do single stocks carry a high degree of risk? why do mutual funds carry less risk?

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06-05-2018
Business

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Why do single stocks carry a high degree of risk? why do mutual funds carry less risk?

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Darvinos Darvinos · Answer 1 · 2018-05-17T14:06:21+02:00

Darvinos Darvinos

17-05-2018

Mutual funds carry less risk compared to single stocks because mutual funds are more convenient and diversified. Mutual funds are being professionally managed by money managers. They are responsible in allocating the money to stocks, bonds or other money market securities.

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