Segregated Funds

Segregated funds (seg funds) are investment products offered by Canadian insurance companies. Like mutual funds, seg funds are pooled investments with certain risk and asset mandates. Unlike mutual funds, seg funds offer the protective features of insurance products. With a specified maturity date, seg funds guarantee 75-100% of the principal investment when the contract matures or if the holder dies before maturity. Other features include locked-in growth by “resetting” the plan and creditor protection.