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A ________ pools individual investor dollars and invests them in large numbers of well-diversified securities, thus minimizing the risks of any single security that does not do well.

Answer :

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Funds which involves a large collection of individual investors coming together to invest in a number of different securities is called mutual fund.

  • Mutual funds involves many individual investors, and not just a single person or organization.

  • This allows the funds available for investment to be substantial, and then invested into a host of different and diverse securities. This will ensure that risk is minimized as all the securities very low chances of not yielding return.

Hence, the missing phrase is mutual funds.

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