Difference between Mutual Fund & Segregated Fund

Investment Fund Types

July 26, 2016

Q: What is the difference between a mutual fund and a segregated fund?

A: Segregated funds are an insurance company’s version of mutual funds. They basically work the same way but have some very structural differences compared to mutual funds.

  1. Segregated funds come with guarantees to return up to 100% of your original investment in the event of death or market meltdown, subject to certain conditions and provided they are held for a specific period of time. This may be of particular interest to investors who have a lower life expectancy and are concerned about the value of their investments upon their death.

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