Segregated Funds (Seg Funds)

If you are familiar with mutual funds, segregated funds are mutual funds but with a guarantee. Every segregated fund will guarantee that you will get back either 75% or 100% of whatever you put into it, no matter what the market does! If the stock market drops 50%, giving you a heart attack, through a segregated fund you will receive either 75% or 100% of every dollar that you put in, despite it now being worth only 50%.

It puts some insurance on your investments. 

Segregated funds have unlimited potential growth through investing in a variety of funds and limits any potential losses.

Pros

• Unlimited potential growth

• Variety of investments

• Potential for a diverse portfolio

• Protection from loss

• Everything a mutual fund offers and more.

Cons

• Slightly higher MER (fees)