C Investors have access to a fund manager's expertise.
A mutual fund is a type of ownership investment that involves collecting money from many people and then investing it in an assortment of different securities such as stocks or bonds. The benefit to shareholders of placing money in mutual funds is that a well-trained fund manager has the expertise to make smart investment decisions on their behalf. Shareholders are not guaranteed a minimal amount of return on their mutual-fund investments, but because the funds are spread out among different securities, the risk of a total financial loss is reduced. Disadvantages to investing in mutual funds are that shareholders pay fees for someone to manage their investments, and the mutual-fund earnings are taxable.