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What is a mutual fund?

The advantage for the average person is straightforward: With $1,000 to invest, you may able to afford one or two shares in Google. But if you put that same $1,000 into a mutual fund, you join a group of investors that owns a basket of investments.

This reduces your risk because you have a more diversified investment. Mutual funds also are easy to cash in if you need money. But, more than anything, if you’re new to investing or simply can’t devote time to selecting stocks, a mutual fund gives you access to professional stock-pickers who can make the investing decisions for you.

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