Why might a mutual fund be a better investment than individual stocks and bonds? A. A mutual fund guarantees dividends. B. Stocks are more expensive. C. Risk is diversified with a mutual fund. D. Bonds carry less risk. E. Stockholders can pick the stocks for their mutual fund.

A mutual fund might be better investment than individual stocks and bonds because:

C) Risk is diversified with a mutual fund

Explanation:

Mutual funds is an investment in which money is brought together from a group of investors, which are invested into stock, bonds, money market account, and much more.

We know the famous idiom "Don't put all your eggs in one basket", well mutual funds do that for you. When you invest, you try your best to reduce the risk, and most important way to do it is through diversification. Mutual funds offer investors a great way to quickly diversify their holdings. Unlike stocks and bonds, investors can keep a small amount in one or more funds and have access to a variety of investment options.

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