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300spartans · 02-12-2005, 04:50 PM

I would not recommend segregated funds.

Look at it this way, you are buying insurance on an investment and the term is usually something like 10 years. Sounds great, the company is guaranteeing your principal over 10 years. But if you look at any equity fund, NONE have lost money over a 10 year period. What market really loses money over the long term?

Sure what if you look at the short term, lets say 5 years. There are funds which have lost money but even with a segregated fund you will be charged for taking out money before the 10 year term.

Furthermore, the management costs are also higher than typical mutual funds. In the long term, the real winner is the company selling you the segregated fund.

I think you'd be better off with a typical mutual fund that has a low mer, over the long run.

Just my opinion of course.

02-12-2005, 04:50 PM	#5
300spartans Backup Goalie Join Date: Apr 2004 Exp:	I would not recommend segregated funds. Look at it this way, you are buying insurance on an investment and the term is usually something like 10 years. Sounds great, the company is guaranteeing your principal over 10 years. But if you look at any equity fund, NONE have lost money over a 10 year period. What market really loses money over the long term? Sure what if you look at the short term, lets say 5 years. There are funds which have lost money but even with a segregated fund you will be charged for taking out money before the 10 year term. Furthermore, the management costs are also higher than typical mutual funds. In the long term, the real winner is the company selling you the segregated fund. I think you'd be better off with a typical mutual fund that has a low mer, over the long run. Just my opinion of course.