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What is a Mutual Fund or Segregated Fund?

Segregated funds vs. mutual funds: how do they compare?

Two great investment options with distinct differences.

Many investors have heard about mutual funds and the wealth potential they have as an investment. Fewer know about segregated fund solutions (seg funds) and their unique features and advantages. Like mutual funds, seg funds are pooled investments. They combine the money of many investors, creating economies of scale and giving you access to investment opportunities that might not be available otherwise. Seg funds:

  • are professionally managed

  • invest in a diversified portfolio

  • offer a wide range of funds to choose from.

Unlike mutual funds, segregated fund contracts are insurance products, available only from an insurance company. This provides some unique advantages, including:

  • estate planning and wealth transfer features

  • potential protection from creditors

  • asset protection through death benefit and maturity guarantees.                   

Key differences at a glance


What’s the right investment for you?

Both mutual funds and segregated funds are excellent choices for long-term investing and building your wealth. The choice that’s right for you depends on where you are in your investment journey, your investment style, and your financial goals. Your advisor can help you find a solution that meets your needs.