Segregated Funds
"Seg" Funds are very similar to Mutual Funds in that they are both sold in units of a group of assets. You purchase units that have a value depending on the value of the assets in the fund. The funds are made up of various stocks, bonds, cash, etc. Segregated funds are actually a "variable deferred annuity" contract only sold by a life insurance company. Being an insurance product means that there is a death benefit, a maturity guarantee, creditor protection and loss protection, none of which are traits of a mutual fund. These days, the annual management fees of segregated funds are close to matching those of a mutual fund and the returns are comparable. So, "seg" funds are the best of both worlds - insurance and investment!
