Why are mutual funds viewed as professional investments?

Mutual funds are considered professional investments primarily because they are managed by professional portfolio managers. These managers have the expertise, experience, and resources to make informed investment decisions on behalf of shareholders. They utilize research, market analysis, and strategic planning to select a diverse range of investments that align with the fund's objectives. This professional management allows individual investors to benefit from sophisticated investment strategies they may not have the time or knowledge to implement on their own.

The other options do not accurately reflect the nature of mutual funds. While individual investors can participate in mutual funds, they are not designed for direct management by these investors (the first choice). Additionally, mutual funds typically incur management fees, which cover the costs of employing these professional managers (the second choice). Lastly, mutual funds often have a diversified portfolio that may include various asset types, such as equities and bonds, rather than exclusively investing in government bonds (the fourth choice).