Which of the following is a key advantage of mutual funds?

A key advantage of mutual funds is the professional management and expertise they provide. By pooling funds from numerous investors, mutual funds are managed by skilled investment professionals who make informed decisions based on thorough research and market analysis. These managers have the experience and resources to evaluate investment opportunities, manage risks, and adjust the fund's portfolio in response to changing market conditions.

This professional oversight can be particularly beneficial for individual investors who may lack the time, experience, or knowledge to manage their own investments effectively. Instead of navigating the complexities of the financial markets on their own, investors can rely on the expertise of those managing the mutual fund, which can enhance their potential for a favorable return on their investment.

The other options highlight features that are not necessarily advantages of mutual funds. For instance, while mutual funds are designed to offer diversification and accessibility, control over individual investments is limited because investors buy shares in the fund rather than individual securities. Additionally, fees associated with mutual funds can vary and are not always lower than trading individual stocks, and although there are many types of mutual funds, investors are still limited to the specific funds available in the market.