Last reviewed June 15, 2026
Reviewed for accuracy and clarity by Sandeep Singh before publication. Learn about our editorial process.
What it means
A segregated fund is an investment product offered through an insurance contract, holding a pool of investments similar to a mutual fund — but with added guarantees, typically protecting a percentage of your original investment at maturity or death, regardless of market performance.
Why it matters
The guarantees provide a layer of protection mutual funds don't have, which matters for people prioritizing capital protection over the lowest possible fees.
Common misunderstandings
- The guarantees aren't free — segregated funds generally carry higher fees (MER) than comparable mutual funds.
- They're regulated as insurance products, not securities, which affects how they're sold and who can offer them.
Where you'll see it
In conversations about insurance-based investing, and in this site's Investing section specifically.
Related terms
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