Which of the following is NOT an attribute of mutual funds?

The correct choice identifies "guaranteed returns" as a non-attribute of mutual funds. Mutual funds are designed to pool money from investors to purchase a diversified portfolio of stocks, bonds, or other securities. While they offer several advantages, including liquidity (the ability to buy and sell shares easily), diversification (spreading investments across different assets to reduce risk), and professional management (where fund managers make investment decisions on behalf of investors), they do not guarantee returns.

Investing in mutual funds involves market risks, and the returns can fluctuate based on the performance of the underlying assets in which the fund invests. Past performance is not indicative of future results, and it's possible for investors to experience losses, especially in volatile markets. Therefore, the statement that mutual funds provide guaranteed returns is incorrect and highlights a key misunderstanding that could mislead investors about the nature of these investment vehicles.