It can be confusing in the world of investment choice. Do you sacrifice security for higher returns? Or do you play it safe and go the guaranteed route locking yourself into low returns? Fortunately for Canadian investors there is another option: Segregated Funds.
Seg Funds are similar to mutual funds but only sold by life insurance companies which allow for the special “insurance” feature that makes segregated funds a safer investment.
Like Mutual Funds, Segregated Funds usually have similar investment choices:
Unlike Mutual Funds, Segregated Funds have a guarantee for both maturity and death:
For those investors who desire to have guarantees build into their investment portfolio to help protect against market risk Segregated Funds are truly ideal for any portfolio, registered or not. The features of Segregated Funds including maturity and death benefit resets help to capture and maintain gains made during an increasing market while establishing a floor to avoid market losses at maturity.
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