Segregated Funds compared to Mutual Funds Legal status of Seg Fund is an Insurance company contract but Mutual Fund is a Security Owner of the fund’s assets is the insurance company in case of Seg Fund but for Mutual Fund it the fund, itself, which is a separate legal entity. Provincial Insurance Regulators vs Provincial Securities Regulators Issuers of Seg Funds are mainly Insurance Companies but for Mutual funds there are Investment companies There is no legal status of Seg Fund. It is serving only to determine the value of benefits payable. Mutual Fund is a legal property; carrying voting rights and rights to receive distributions. Seg Funds are sold to investors with Information folder vs Fund Facts document (simplified prospectus is available upon request) for Mutual Funds. Frequency of valuation is Usually daily for Seg funds or at least monthly, But for Mutual Funds it is usually daily, and at least weekly. Seller of Seg Fund should be a Licensed life insurance agents. In case of Mutual Fund it should be a successful completion of a recognized investment course Licensed. Seg Funds comes with maturity guarantee. It is minimum of 75% of deposits after 10 years. Companies may offer guarantees up to 100%. But none for Mutual Funds. Protection against issuer insolvency of Seg Fund is covered by Assuris, a not-for-profit organization, providing limited protection to Canadian life insurance policy holders; maximum compensation up to $60,000 or 85% of the promised guaranteed amounts, whichever is higher; protection only needed if the guaranteed amount is higher than the market value of the investment The Mutual Fund Dealer Association Investor Protection Corporation, a not-for-profit corporation, providing limited protection to eligible customers of its members. Death benefits is included in Seg Funds. It may be subject to age or other restrictions. But for Mutual Funds none . Creditor protection is included under certain circumstances. But Mutual Fund can not provide it. Probate can be bypassed with Seg Funds since proceeds of contract held by deceased contract holder may be passed directly to beneficiaries. It is not the case in Mutual Funds.