The Segragated funds
Description of segregated funds taken from the website of Industrial Alliance Insurance and Financial Services Inc.
Segregated funds are a type of investment consisting of stocks, bonds, or money market securities. They are similar to mutual funds, but they have a major advantage: they offer guarantees that protect the amounts invested against market declines.
Capital Protection
A segregated fund includes an insurance component that protects your investments against market declines.
You have the option of a guarantee that protects 75% or 100% of your investments at contract termination or upon death, if the market value of the funds is lower.
At contract termination or upon death, the guarantees of a segregated fund protect your capital against disruptions that can have a more severe impact on the markets, such as recessions or an economic crisis.
To protect the interests of investors, the assets of these funds are managed separately from those of the company, hence the name “segregated funds”.
What is a guarantee for a segregated fund?
Unlike mutual funds, segregated funds provide you with a significant guarantee and protect between 75% and 100% of your investments!
Why choose an investment that offers guarantees?
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To protect your investments during financial market fluctuations
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For capital security as you approach retirement
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For peace of mind