Shelby and Mark Lawrence have become very busy. Shelby’s pet salon is continuing to grow while Mark’s responsibilities at work have been increasing. In addition, they share the burden of transporting Blair to cheerleading practice and Travis to soccer practice. They are concerned that they do not have much time to monitor their investments and are looking for other alternatives to manage them. Some of their friends have recommended mutual funds. Shelby and Mark plan to meet with a Financial Advisor to learn the ins and outs of these types of investments.

Questions 1. What are the major reasons investors purchase mutual funds as reported to the Lawrences by the Financial Advisor?