Segregated funds are similar to mutual funds, however what sets them apart is the guarantee they offer of investment protection against possible market downturns. Distributed exclusively by insurance companies, segregated funds are comprised of stocks, bonds or market securities and are managed by experts.
Characteristics Of Segregated Funds
Allow you to take advantage of rising markets while offering guarantees against possible downturns at maturity and in the case of death.
- Managed by experienced portfolio managers and include an asset mix that suits all investor profiles.
- Protect your savings from potential creditors depending on your province of residence.
- Offer quick settlement in the case of death thanks to the designation of a beneficiary.
- Are part of the IAG Savings and Retirement Plan and may be purchased as an RRSP, TFSA, LIRA, RRIF, LIF or a non-registered savings plan.
3 Advantages Of Segregated Funds
1. Principal guaranteed – Depending on the contract, 75% to 100% of your principal investment is guaranteed if you hold your fund for a certain length of time (usually 10 years). If the fund value rises, some segregated funds also let you “reset” the guaranteed amount to this higher value – but this will also reset the length of time that you must hold the fund (usually 10 years from date of reset).
2. Guaranteed death benefit – Depending on the contract, your beneficiaries will receive 75% to 100% of your contributions tax free when you die. This amount is not subject to probate fees if your beneficiaries are named in the contract.
3. Potential creditor protection – This is a key feature for business owners in particular
Guaranteed Interest Funds
Advantages and characteristics
- Offer a fixed and guaranteed interest rate for the term of the investment, offering a 100% guarantee of your capital at maturity.
- Available at competitive rates for terms of 1 month, 1 to 5 years and 10 years.
- Offer protection against creditors.
- Are a part of the IAG Savings and Retirement Plan and may be purchased as a RRSP, TFSA, LIRA, RRIF, LIF or non-registered savings plan.
- Deposits guaranteed by Assuris
Advantages and characteristics
- Fluctuate according to market value and do not offer any guarantee on your investments.
- Offer a diversified asset mix.
- Are not included in the IAG Savings and Retirement Plan , but may be purchased as: RRSP, TFSA, LIRA, RRIF, LIF, and a non-registered savings plan.
Daily Interest Fund
High Interest Savings Account
Simple, accessible, risk-free
The high interest savings account is a good option to grow your money with complete peace of mind. Whether you want:
- To wait for the right time to invest
- Risk-free saving
- Liquidity for unforeseen emergencies
Benefits and features
- High yield
- No withdrawal fees, no management fees
- Interest that accumulates on a daily basis (paid monthly).
- No minimum investment
- Withdrawals are possible at any time
- Offered in all our savings products, regardless of registration type (RRSP, TFSA…).
- Possible creditor-protection