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Originally Posted by Slava
The seg fund has a lot of differences again though; one being that they can flow capital losses through to investors as well as capital gains. A mutual fund can't do that. There are also numerous estate planning and creditor protections afforded to segregated fund holders that are not available to mutual fund investors. Again, yes the MER tends to be higher (they aren't always), but if you have specific needs that you are addressing then there can be a lot of value to that.
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Yes, most people tend to like that they have more creditor protection (as in actuality it is an insurance product) and many favour them for estate planning. There is also different regulation of Segs compared to Mutual funds due to it being an insurance product.
Segs also have nominal shares compared to the actual shares of a mutual fund, so you don't actually see the increase in shares like you would in a mutual fund though any increase in value is still reflected. I actually know a couple of people that don't like this and actually want to see the physical increase of shares on their statement.