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Segregated Fund

   Also found in: Wikipedia 0.01 sec.
Segregated Fund
An investment company in Canada that has features of a life insurance policy and a mutual fund. The investment company sells life insurance to policyholders, who have rights to all benefits, just like any other life insurance policy. It then uses the proceeds to buy securities, which it packages and sells as shares in a mutual fund. The two aspects of a segregated fund must be kept separate from each other, except in the manner described above.


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Specifically, the increase will be placed in a segregated fund only to be used for the above stated purposes.
Universal life insurance and segregated funds have become popular tools over the years to provide asset protection in certain circumstances.
Having finally recovered their capital, many investors are looking for ways to make sure they don't lose it again--and segregated fund promoters are offering them a solution.
 
 
 
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