Which statement best describes a commingled account?

A commingled account refers to an investment vehicle in which the funds of multiple investors are pooled together to be managed collectively. This structure allows for greater diversification and potentially lower costs, as expenses such as management fees can be spread across a larger asset base.

In this type of account, investors share in the gains and losses proportionately to their investment amounts, which can be beneficial in accessing investment opportunities that might be too costly or complex for an individual investor to secure on their own. Commingled accounts are often used in institutional investment environments, such as pension funds or large investment firms, where many individual investor funds are combined to achieve economies of scale.

The other choices do not accurately capture the essence of a commingled account. For instance, an investment account for individual retirement funds pertains specifically to retirement savings, and a legal structure for mutual fund operations relates to regulatory and organizational aspects rather than the pooling of assets. Lastly, stating that an account is solely managed by a single investor contradicts the very principle of commingling, which involves multiple investors contributing funds to a shared account.