Mutual funds: a flexible way to invest your money 

Mutual funds allow you to invest in a portfolio of assets that are managed by professionals. They let you diversify your portfolio more widely than you may be able to do when investing in individual stocks and bonds on your own. Together we can select a fund that gives you the right balance of risk and reward for your financial plan.

Segregated funds: protect your wealth as it grows

Segregated funds invest in a variety of stocks and bonds. They’re different than mutual funds. They offer unique protection features that are only available through insurance companies. They’re a great way to save for your retirement and investment goals. 

How do they work?

Mutual and segregated funds work the same way.

For both investment options, money is pooled together for the benefit of the investors, and to buy a variety of different investments based on the fund’s investment goals. This does two things:

  1. It gives you access to investment managers, which may make it easier for you, since investing on your own can be complicated.
  2. It spreads your money among different investment options, to help reduce investment risk. For instance, if you put all your money in one stock, and it goes down, you could be in trouble. Segregated and mutual funds split money among various investment options held in a single fund, so there’s less risk.

What’s the differences between mutual funds and segregated funds?

Category Mutual funds Segregated funds
Type of investment A pool of money spread across different investments, managed by experts. A pool of money spread across different investments, managed by experts.
Guarantees None Insurance guarantees can protect much or even all your original investment at death and policies maturity date.
Fees Less than segregated fund policies More than mutual funds due to paying a premium for the insurance guarantee
Variety of investment options Similar Similar
Estate planning Mutual funds held within a registered plan, proceeds are passed on to your named beneficiaries when you die. No probate tax. When you die, proceeds go directly to your named beneficiaries and won’t flow through your estate. No probate tax.
Potential creditor protection For mutual funds held within a registered plan, bankruptcy protection may apply. Yes1

1. Creditor protection depends on court decisions and applicable legislation, which can be subject to change and can vary from each province; it can never be guaranteed. Talk to your lawyer to find out more about the potential for creditor protection for your specific situation.

Let’s talk

Let me help you find ways to save, achieve your goals and make sure the money you’ve worked hard for is working for you.  Over time, your investments can help contribute to the future you want for you and your family.