Q.________ enables small investors to participate in the investment on share capital of large companies.

Mutual funds pool small savings to invest in large companies' shares; the answer is option (b).

A mutual fund collects money from a large number of small investors and invests the pooled amount in a diversified portfolio of shares and other securities managed by professionals. This allows a small investor — who could not otherwise buy a spread of large-company shares directly — to participate in the share capital of big companies and share in the returns, while spreading risk.

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