Segregated Funds **

A Risk-Free Investment

A segregated fund is essentially a mix between a mutual fund and a life insurance policy. You invest money into a fund owned by an insurance company. This money is used in stocks or bonds and so, its value fluctuates with time. The money may be withdrawn when the fund matures (usually around 10 years) or given to a beneficiary in the event of death. It is for this latter reason that segregated funds resemble a life insurance plan.

Segregated funds offer many benefits over mutual funds. Primarily, there is a death or maturity guarantee. This means the investor is guaranteed to receive at least 75% of the capital they contributed, even if it doesn't perform well. Thus, very little losses are suffered. Mutual funds, on the other hand, do not provide this guarantee, meaning the investor may lose all of his investment! All of these make a segregated fund a great risk-free option, combining a form of life insurance with a powerful investment strategy.

Contact us today for more information on how you can capitalize on a segregated fund.

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