Why a retail investor is recommended to invest through a mutual fund in a stock exchange?
1. Mutual funds invest funds in a diversified portfolio of securities, thus reducing the risk of the investor.
2. Mutual funds are managed by financial experts.
3. Mutual funds promise high returns to the investors of the fund.

A. 3 only

B. 2 and 3 only

C. 1 and 2 only

D. 1, 2 and 3

Answer: Option C