Mirror Fund

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Mirror Fund

A mutual fund in which a shareholder may invest through his/her life insurance policy with another company. For example, one may use his life insurance policy at Company A to invest in a mirror fund with Company B. Mirror funds provide flexibility, but usually have higher fees than other mutual funds.

References in periodicals archive ?

The paperwork states it is invested in Mirror funds.

DEAR TRICIA; Need some practical financial advice? YOUR MONEY Editor Tricia Phillips and her team can help

If the policy invests in mirror funds, remember there will be additional charges on top of those quoted.

Education plans a big help in saving for future fees

Mirror funds are not the same as the true underlying fund and therefore the fees and performance can be different from that of the true fund.

Be careful before you sign on the dotted line

Also, it is important to ensure that you are investing in the actual fund not a mirror fund as the charges on mirror funds tend to be higher and this can have a detrimental affect on the performance.

Investors must read the fine print

It is very important to find out if the scheme offers direct access to the investment funds or if they offer Mirror Funds, which will cost you an additional - often unseen - layer of charges.