What does a fund wrap provide to investors?

A fund wrap provides investors with ownership in units of various mutual funds, which is why this option is correct. Fund wraps are designed to offer a diversified investment approach by allowing investors to access multiple mutual funds under a single account.

This structure not only simplifies the management of investments but also enhances diversification, reducing the overall risk for investors as their capital is spread across different asset classes and investment strategies. Fund wraps typically allow for a more tailored investment strategy, as financial advisors can select specific funds that align with the investor's risk tolerance, investment objectives, and time horizon.

The other options do not capture the essence of what a fund wrap offers. It does not limit an investor to exposure from a single mutual fund; instead, it encompasses a range of funds. A fixed interest rate is not applicable, as fund wraps are not structured like fixed-income products, and they do not solely involve shares in exchange-traded funds, which limits their supportive nature in providing a broader investment selection across multiple mutual funds.