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.
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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.
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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