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How to diversify the mutual fund to avoid major risk and moderate return?

Dear Manish,

Though i have read various information about investing in mutual funds. Still not able to understand how to diversify MF properly. I am not good at understanding these terms basically.

Some of friends invested in certain mutual funds and now its at loss. So, i thought of understand the basic knowledge on how to diversify our funds to manage the huge risks?

Regards,

S

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