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    Head Librarian
    InsuranceLibrary.com, South Dakota
    A “mutual fund” is a share in an investment company.  According to the prospectus it invests the funds using a particular investment strategy.  The fund is generally quite diversified reducing the risk of a particular security suffering a great loss.  At the same time this diversity dampens the effect of a particular security contained in the fund experiencing enormous gains.  The mutually fund is generally viewed as being less volatile and more diversified.
    Answered on September 2, 2014
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