What are Segregated Funds and How do They Work?
By Iain Butler: Chief Investment Advisor, Motley Fool Canada Fool
For Canadian investors who want the growth benefits of investing, but the security of an insurance product, you have a unique option
the
segregated fund.
Segregated funds have attractive “principal guarantees” that allow you receive 75% to 100% of your initial investment, not to mention some unique features like death benefits and creditor protection.
What exactly are segregated funds? How do they work, and are their benefits worth the costs? Let’s break them down and find out.
What is a Segregated Fund?