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Investment Protection For your Money

Segregated funds vs. Mutual funds: Which one I should choose?

When you are ready to invest some of your money, you may want to figure out what kind of option is the best bang for your buck. Segregated funds and mutual funds policies are the most popular options for investors in the investment marketplace. 

However, investors may have questions regarding what are mutual funds and segregated funds?

And, what are the differences between these two funds policies? 

In the following article, let's introducing in detail the questions of the public.

What is a mutual fund?

A mutual fund is a type of investment fund that allows investors to pooling their money together managed by a qualified investment company or bank. Mutual funds contain different types of investments, such as stocks, bonds, or other funds. 

Each mutual fund typically focuses on specific types of investment or industry fields. For example, a fund may invest mainly in government bonds, stocks from technology or infrastructure stocks in certain countries. Some funds may invest in a mix of stocks and bonds. 

What is a segreated fund?

Segregated funds policy, like mutual funds, there's a large pooling of investments managed by a qualified investment firm. However, the segregated funds have a major advantage that mutual funds do not. Segregated funds offer insurance guarantees to protect much of your money or even all of your original investment. 

Unlike stocks, investing in funds not only diversifies your investment but also limits your risks caused by market fluctuations. This is one of the biggest advantages to attract people to choose segregated funds investment. 

Before you decide to choose any funds, you may require to participate in an investment risk assessment. 

Why choose segregated funds?

The majority of people are willing to grow and protect the money at the same time, here's why you should consider segregated funds as part of your asset allocation picture.


Although segregated funds' fees are higher than mutual funds, however; Segregated funds have the insurance guarantees mutual funds don't have. Let's look at the advantages of segregated funds in more detail below.

Advantages of investing in segregated funds

Protection of the amount invested at maturity of the investment and at death

Protection of investment gains each year thanks to resets1

Possibility of not paying probate fees2

Rapid settlement in the event of death

Protection against creditors3

Easier and faster tax return

Possibility of a lifetime guaranteed income4

1 Available in the Classic Series 75/100, 100/100 and FORLIFE. 2 These fees can vary according to each client’s province of residence and situation.
3 Certain conditions apply. 4 The FORLIFE series provides a lifetime guaranteed income.

Investing in segregated funds


Talk to our advisor

Step 2

Open an account

step 4

Choose the portfolio funds

Seg vs mutual
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