Although the market was hammered this month by subprime loans, individual mutual funds aren't likely to have much exposure to the volatile sector. Most subprime lenders are small-cap companies, and, as such, funds won't have large amounts of cash invested in them. In addition, most mutual funds are diversified.

"Diversity is what saves you from an event like this," Jeff Tjornehoj, senior analyst with Lipper, told the Associated Press. "Some of the worst offenders among subprime lenders were generally not considered sizable holdings."

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