Segregated / Mutual Funds

Funds operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. These funds offer investors the advantages of diversification and professional management.

Features Segregated Fund Mutual Fund
Professional portfolio management Yes Yes
Collective pool of funds that investor pays into. Yes Yes
Grow a portfolio while diversifying risk Yes Yes
Easy access to your portfolio through daily price valuations Yes Yes
Guaranteed degree of protection against investment losses on maturity 75% - 100% of premiums paid (minus management and other related cost) N/A
Guaranteed degree of protection against investment losses on death 75% - 100% of premiums paid (minus management and other related cost) N/A
Estate preservation Generally directly receives the greater of the guarantee death benefit or the market value of the client's share. The market value of the asset is subjected to estate-related processes, which may result in long waiting time before receiving payment.
Potential to benefit from market gains using resets Yes N/A
Potential creditor protection in case of bankruptcy Yes N/A
Fees Higher, also including a management fee and an insurance fee component Lower