Segregated funds combine the growth potential of a mutual fund with the security of a principal guarantee.
Here’s a quick summary of the added features that can make segregated funds an excellent alternative to mutual funds.
Segregated funds vs. mutual funds
|Features||Segregated funds¹||Mutual funds|
|Professional portfolio management|
|Diversification among asset classes and management styles|
|Grow a portfolio while diversifying risk|
|Liquidity: easy access to your money through daily price valuations|
|A guarantee of the principal (or a specified percentage) at maturity²|
|A guarantee of the principal (or a specified percentage) at death²|
|Ability to bypass probate and keep financial affairs private|
|Potential to benefit from market gains using resets|
|Potential creditor protection in case of bankruptcy|
|Consumer protection through Assuris³|
¹ Segregated fund fees are higher than mutual funds, as they include a management fee and an insurance fee component.
² Withdrawals reduce guarantees proportionately. Guarantees end at age 100.
³ Assuris. Segregated funds contractholders are protected in the event their life insurance company should become insolvent. All deposits made to Roger Menard Insurance Guaranteed Investment Funds are covered by the Canadian insurance industry’s own insurance body: Assuris. Through Assuris, for each category of coverage (registered and non-registered), total guaranteed segregated fund benefits are fully covered up to $60,000. If the guarantees exceed this amount, Assuris covers 85% of the promised benefits, but not less than $60,000. For more information, visit www.assuris.ca