The current roller coaster ride in financial markets, marked by unpredictability and volatility, can be a tough pill to swallow for many investors. Some, like those in or approaching retirement, also don’t have the time horizon to ride it out. Advisors are looking for solutions that give their clients access to upside while mitigating downside risk. That’s driving the appeal of segregated (seg) funds.
Seg fund policies allow investors to lock in the value of their capital to protect against market declines while taking advantage of market gains. These funds are like any other investment fund in terms of providing access to a variety of stocks and bonds. The difference is the policies have an insurance guarantee safeguarding most or all the invested capital.¹
“Advisors want to be confident in the solutions they recommend. In today’s highly volatile market, segregated funds are an ideal option for clients seeking both stability …