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I COMPLETELY RE-WROTE THIS SECTION. IT'S IN FOLDER
#146 IN OUR SHARED FOLDER IN DROPBOX.

Section 10

Use Stock Mutual Funds or Other

Diversified Portfolios

When I talk about investing in stocks for growth, I usually suggest

that people use a diversified portfolio; either one that is actively
managed, perhaps a mutual fund, or a professionally-managed
individual portfolio tailored to an investor’s specific goals, or an

unmanaged portfolio like an index fund or an exchange-traded

fund (ETF). Regardless of the type of investment that you choose
to use, having a diversified portfolio is the key. For the rest of this
book, I will use the term “mutual fund” to describe any of the

diversified portfolios described above, even though the index

fund and most ETFs are not actively-managed.

Buying, selling, and maintaining a portfolio of individual

securities can be difficult, time-consuming, and expensive.
With a stock mutual fund, managed account, or ETF, you have
access to professional managers who know the market well.

They have the expertise and resources to maintain portfolio

diversification, make sound decisions in changing market and

Chapter 3: You Must Have Growth In Your Portfolio