Which of the following is NOT mentioned as a legal investment in Special Care Trusts?

The correct answer identifies an option that is not explicitly mentioned as a legal investment in Special Care Trusts. Special Care Trusts have specific guidelines and regulations regarding what types of investments are permissible to ensure the funds are managed prudently and in a manner that serves the needs of individuals with special needs.

Bonds that are legal investments for commercial banks, investment certificates, and certificates of deposit insured by FDIC are typically recognized as safe and legitimate investment vehicles that can generate growth and maintain liquidity, aligning with the purpose of managing trust funds responsibly. These instruments are often stable and are viewed as suitable for ensuring that the needs of beneficiaries can be met over time.

On the other hand, mutual funds, while popular and capable of providing diversification and potential returns, may not fall within the more conservative and designated 'legal investments' specified for Special Care Trusts. This is likely due to the complexity, varying risk factors, and management fees that can be associated with mutual funds, which may not align with the preservation and protection goals of the trust. Thus, recognizing that mutual funds are not specifically cited as a suitable investment in this context makes this the correct choice.