The primary advantage of mutual funds is that they b allow people with small amounts of money to diversify. While mutual funds can sometimes outperform the market, this is not guaranteed and varies depending on the performance of the underlying investments. Furthermore, the primary strength of mutual funds lies in their ability to pool resources from various investors, allowing individuals to access a diversified portfolio without needing a large capital investment. This means that even those with limited funds can achieve diversification, which helps mitigate risk. Option a may occasionally be true, but it’s not a consistent feature of mutual funds.
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