Segregated Funds: for peace of mind during market turmoils

Ever wish you could reap the benefits of the market without having to worry about the risks that come with it? Segregated Funds offered by Insurance companies may be the solution you are looking for. They have the same look and feel as that of the mutual funds. However, they offer much more. To compensate, the MER for segregated funds are usually higher than that of mutual funds. Here are three features that stand out for most Segregated Funds:


  1. Principal Guarantee: A contractual agreement may guarantee you a certain percentage (eg; 75% or 100%) of your original investment over a period of time. Some Segregated Funds even let you reset the guarantee value so that you can lock-in the market gains.

  2. Guaranteed Death Benefit: The contract may guarantee a certain percentage (eg; 75% or 100%) of your original investment to the beneficiaries if you die - even if the actual investment value is lower. These proceeds are usually tax free and are not subject to probate fees. 

  3. Creditor Protection: Segregated Funds usually have creditor protection - a valuable feature for business owners. 


Please let us know if you would like to know more about Segregated Funds and how these products can add value to your portfolio.