Which statement accurately describes with-profits and unit-linked funds?

Which statement accurately describes with-profits and unit-linked funds?

• A. With-profits funds do not offer smoothing or guarantees; unit-linked funds do.
• B. Unit-linked funds include smoothing and guarantees; with-profits reflect market exposure.
• C. With-profits funds typically offer smoothing and guarantees through the insurer; unit-linked funds reflect underlying investments with direct market exposure.
• D. Both fund types are identical in risk and return.

Answer: (C)