SEGREGATED FUNDS ARE FOR EVERYONE
Segregated fund products are pools of money invested to achieve certain financial objectives. Segregated funds are similar to mutual funds in that they offer an investor the ability to pool money with other investors which are invested in stocks, bonds, indicies of your choice. However it is the guarantees of the return of your capital make them attractive. Fund units that are issued to you represent your portion of ownership in a segregated fund.

Segregated fund Guarantees
Mutual funds are at risk of losing all of your investment. Segregated funds, by law are not totally at risk for the investor. Segregated funds must return at least 75% to 100% of the premiums paid in (less any withdrawals) upon death or at maturity. Segregated funds put a floor under investments that don't perform as expected. In all markets, this allows you to invest for appreciation in value while protecting your downside.

Segregated funds come in equities, bonds and indices and many variations and blends of all of these products.

Estate Planning
Segregated fund insurance products are great for estate planning. Because Segregated funds are life insurance products, holders can name a beneficiary. Funds paid out at death, are paid without delay to the named beneficiary as they are not subject to probate taxes.

Each fund family offer segregated funds with their own investment objectives and you have a world of 4 star or better segregated funds from which to choose when you go to our list at www.trustco.ca.

Segregated Funds: Protecting Your Capital

Segregated funds are backed by insurance so after 10 years or at your death, regardless of market performance you are entitled to up to 100% or the market value if higher. If you invested $60,000 and, after 10 years the market dropped reducing the actual value of your segregated fund to $50,000, you would receive up to $60,000 if you redeemed the units. If the market has risen, you would receive the higher value.