Which of the following selections describes a benefit of investing in common or collective funds?

Investing in common or collective funds provides a significant benefit related to diversification. By pooling funds from multiple investors, these funds can spread investments across a range of securities, asset classes, or sectors. This diversification reduces the risk associated with investing in a single asset, as the performance of one security can be offset by others, leading to a more stable investment profile.

Wider investment diversification is crucial because it minimizes the impact of any single investment's poor performance on the overall portfolio. In the context of collective funds, this means investors can gain exposure to a broader market or various asset types than they might individually, which is particularly beneficial for achieving a balanced portfolio and mitigating risks.

While the other options highlight valid aspects of investing in collective funds, they do not encapsulate the fundamental advantage of diversification inherent in these investment structures. Smaller accounts benefiting from lower cash outlays, reduced commissions through larger orders, and access to investment expertise are all valuable points, yet they are typically secondary to the essential benefit of diversification that common or collective funds provide.