A segregated fund combines the performance potential of a mutual fund with the security of an insurance product. Like a mutual fund, a segregated fund is a collection of stocks, bonds and other investments that provide you with an opportunity to "grow" your investment capital. However, a mutual fund is a security, while a segregated fund is an insurance product.
The Segregated Fund Advantage
A segregated fund is actually an insurance contract. So when you invest in Standard Life’s Ideal Segregated Funds family, you become a “contract holder”. As the owner1 of the contract, you are entitled to benefits only segregated funds can offer, such as built-in guarantees. This means that segregated funds can minimize your exposure to market downturns.
For More Information on Segregated Funds from Sunlife Financial
Segregated Funds vs Mutual Funds Explained
James Colton B.PE (Honours), EPC