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Build Your Portfolio With Segregated or Mutual Funds in Barrie, Ontario

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What We Do

Segregated Funds & Mutual Funds in Barrie, Ontario

3

dedicated insurance specialists

120

years of combined experience in financial services

If you’ve made the decision to invest some of your savings or update your existing portfolio, you may be wondering which investment vehicle might be best suited for you. Among other options, segregated funds and mutual funds are popular choices among investors due to their simplicity and affordability.

At Walton Financial, our investment representatives will be happy to help you choose the best option for your needs.

What You Need To Know

What is a Mutual Fund?

A mutual fund is an investment vehicle, in which money from multiple people is pooled together and invested in a variety of bonds, stocks, and other securities. Mutual funds are managed by professionals that take the investment decisions with the objective of growing the overall fund value. As the total fund value increases, so does your share in the fund; as the fund value decreases, so does your share as well.

Types of mutual funds:

  • Money market funds
    Money market mutual funds can only invest in certain short-term, high-quality investments issued by the government. They are relatively low risk.
  • Bond funds
    Bond funds come with higher risk than money market funds but aim to produce higher returns. There are multiple types of bonds available; therefore, the risk and return of bond funds can vary significantly.
  • Stock funds
    These funds invest in corporate stocks. Stock funds can be further subdivided into income funds, index funds, growth funds, and sector funds.
  • Target date funds
    Target date funds are designed for investors with a particular retirement date in mind. They include a combination of bonds, stocks, and other securities. Over time, this combination gradually changes according to the fund’s strategy.

Overview

What is a Segregated Fund?

A segregated fund, commonly known as a “seg fund”, is an investment vehicle often used by insurance companies in Canada to manage individual insurance products with variable annuities. Within a segregated fund, a large pool of money from multiple investors is used to purchase bonds, stocks, or other securities. Being an insurance product, a segregated fund offers both capital appreciation and life insurance benefits.

Overview

Why Offer Group Health Benefits?

Offering group health benefits as part of your compensation packages offers benefits to both you (the employer) and your employees.

What you need to know:

  • Segregated fund contracts guarantee between 75% and 100% of your premiums once the contract matures, or upon your death. In addition, some segregated funds offer income guarantees.
  • You are allowed to name beneficiaries when purchasing segregated funds with non-registered money. This means that the death benefit will bypass your estate and will go directly to your named beneficiary. In addition, you can control how they receive the benefit: as a lump sum or annuity payouts.
  • Money invested in segregated funds may be protected from seizure by creditors. As such, segregated funds can be of great use for professionals and business owners looking to protect their savings from a bankruptcy or an unexpected lawsuit.

Segregated Funds vs Mutual Funds: Summary

Overview

Mutual funds and segregated funds offer many inherent benefits, including professional money management, diversification, simplicity, and choice. Segregated funds are regulated as insurance products rather than as securities. This difference means that segregated funds have certain additional advantages including no trustee fees, potential creditor protection, estate bypass, and death and maturity guarantees.

Which Option is Right for You?

The Right Choice

Not sure which option is right for you? Let us examine the key differences between segregated funds and mutual funds.

Guarantees and Benefits

The principal investment in a segregated fund has a death benefit or maturity guarantee of 75% - 100%. Mutual funds typically do not offer any maturity or death benefit guarantees.

Automatic Resets

Segregated funds may have a death benefit reset, depending on your age at purchase and your guarantee level. Mutual funds don’t have a maturity or death benefit guarantee, so automatic resets are not an option.

Protection from Market Volatility

While seg funds are susceptible to market fluctuations, maturity and death benefit guarantees offer extra protection. Mutual funds do not offer the same level of protection.

Creditor Protection

Segregated funds are life insurance contracts, meaning that your funds may be protected from creditors in the event of a bankruptcy or lawsuit. Mutual funds do not have any protection from creditors most of the time.

Estate Planning

All segregated funds allow your savings to bypass the estate when being transferred to beneficiaries upon your death. You could also arrange to have your registered mutual funds savings transferred to your beneficiaries, - this can be done relatively quickly if the beneficiary is your spouse; other types of beneficiaries would have to wait longer.
120
Years of Combined Experienced
28770
8
Trusted Team Members

Start Your Journey

Invest in the Right Fund with Walton Financial Group Inc.

While segregated and mutual funds have a lot of similarities, they aren’t quite the same. At Walton Financial, our registered investment advisors will be happy to help you determine which investment vehicle is right for you and get started on your investment journey.

Dual Disclosure: Insurance products, including segregated fund policies are offered through Walton Financial Group Inc., and Investment Representative Bradley Walton, Jeff Cook and Curtis Johnston offer mutual funds and referral arrangements through Quadrus Investment Services Ltd.

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