Which of the following is considered an advantage of investing in mutual funds?

Investing in mutual funds offers significant advantages, one of which is access to professional fund management and diversification. When you invest in a mutual fund, your money is pooled with that of other investors and managed by a professional portfolio manager, who has the expertise and resources to research and select investments. This professional management is particularly beneficial for individuals who may not have the time or knowledge to make informed investment decisions on their own.

Moreover, mutual funds typically hold a diversified portfolio of assets, which means that your investment is spread across different securities. This diversification helps to reduce overall investment risk because it minimizes the impact of any single security's poor performance on the entire portfolio. Instead of investing in just one or a few stocks or bonds, mutual funds allow investors to gain exposure to a broader range of investments, which contributes to a more stable return profile over time.

In contrast, the other options suggest features that do not accurately describe mutual funds. For example, guaranteeing fixed returns is not realistic in the context of mutual fund investments, as they are subject to market fluctuations. Similarly, while mutual funds are typically liquid, immediate liquidity is not guaranteed for all invested funds, as some may have restrictions on withdrawal or redemption periods. Lastly, mutual funds cannot provide protection against market