Segregated Funds

A Segregated Fund is actually an insurance contract with two parts: an investment that produces the return, and an insurance policy that covers the risk. The seg fund is like a mutual fund, because you are pooling your money with other people to share investment gains. But because life insurance companies issue segregated funds, there is a guarantee attached that protects the investor's principal from sudden market declines. Think of such an investment as a mutual fund with a safety net.

Like mutual funds, segregated funds contain a diversified group of solid investments. They come in various sizes and asset mixes, and benefit from the experience of a qualified portfolio manager. Where the two types of funds differ is in flexibility and the added cost of insuring the principal.

Mutual funds, other securities and securities related financial planning services are offered through Qtrade Advisor, a division of Credential Qtrade Securities Inc.