Segregated vs. Mutual Funds Back
What Are Segregated Funds?
There are a couple of similarities between Segregated Funds and Mutual Funds:
- Notable growth potential
- Offers unique investment diversity
- Investments in stocks and bonds
They differ in the fact that Segregated Funds are insurance products that are administered by fund management companies. With insurance companies implementing added guarantees, these funds couple growth potential with insurance security to make for a great investment opportunity.
Furthermore, Segregated Funds come equipped with a series of added benefits, which include:
- Guaranteed Payout: Upon maturity, Segregated Funds have a guaranteed payout between 75%-100%.
- Settlement of Estate: Beneficiaries are paid 100% of the investments or market value whichever is higher as death benefit in the event of death of the contributor. The use of that money is entirely optional, having no limitations as to how the newly acquired finances are utilized.
- Financial Protection: With an ensured payout upon death, all finances generated from segregated funds are creditor protected, all meant to secure your investments.
Segregated funds offer great flexibility, and are a great option for anyone considering retirement, due to its guaranteed payout.
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