Not OP, but the way I understand funds are there to balance out volatility of any given stock. You get one growth stock, it might jump up 20% in a day... but also might drop. Overall though, it’ll probably rise some 5-10% yearly. But you might run into liquidity issues where you need money and it is exactly at the period when the stock was in the red... suck, right?

Do you go with a strategy of 2 stocks with this kind of behaviour. Each one has the same story, but it’s less likely that they would both fall at the same time. And on average, they would give you about the same 5-10%, but less volatility.

Now do it with 20, 50 or 100 different stocks. You really limit how much money you would make if suddenly one of them were to x10 in price. But in the other hand you are also much more “protected” by diversification.