简中▪ Segregated funds are an investment product sold by life insurance companies and combine the growth potential of a mutual fund with the security of a life insurance policy. They can only be sold by financial advisors with Life insurance licence.
▪ Like mutual funds, segregated funds consist of a pool of investments in securities such as bonds, debentures, and stocks. The value of the segregated fund fluctuates according to the market value of the underlying securities.
▪ Unlike mutual funds, segregated funds provide a guarantee to protect part of the money you invest (75% to 100%). Even if the underlying fund loses money, you are guaranteed to get back some or all of your principal investment. But you have to hold your investment for a certain length of time (usually 10 years) to benefit from the guarantee. Guarantee amounts will be paid out at death or contract maturity.
