What is true about mutual funds?

Mutual funds are indeed managed by professional managers, which is a key feature that distinguishes them from other investment vehicles. These managers are responsible for researching, selecting, and monitoring the investments held within the fund, aiming to achieve the best possible returns for investors based on the fund's stated objectives. This professional management is particularly beneficial for individual investors who may not have the time, expertise, or resources to manage a diversified portfolio effectively on their own.

Examining the context of mutual funds helps clarify why the other options are less accurate. For instance, there are no guaranteed returns with mutual funds; they are subject to market risks, and returns can fluctuate based on the performance of the underlying assets. Additionally, mutual funds are accessible to a wide range of investors, not just high-net-worth individuals. Many mutual funds allow for relatively low minimum investments, making them suitable for the average investor. Lastly, mutual funds can invest in a diverse array of asset classes, not limited to stocks, including bonds, money market instruments, and other types of securities. This diversity allows investors to tailor their investment strategies according to their risk tolerance and financial goals.