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Originally Posted by Slava
True enough, but when you hit $250k and above almost every fund (if people go that route) has a reduced fee structure so its largely irrelevant.
Its a bit of a stretch on the capital losses though. The individual investor can't flow anything, its all done by the company. So while its true that you can receive losses as well as gains on a segregated fund, you have no control. I only mention this because its one of my most disliked factors about investment funds of any type; I want total control as an investor and this isn't the case in that situation.
Also, almost no seg funds let you do anything VERY risky any more. You can buy some pure equity mandates, but the small cap, emerging market kind of funds are not prevalent.
To me the major benefits of the segregated funds at this point are either those income guarantees or the estate planning benefits (which are numerous). Depending on your situation as well, the creditor protection can be excellent for a small business owner.
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While you don't have the total control that you covet, it is something that is different from a mutual fund, and I mentioned it because posters wanted info on seg funds, they should know they have the possibility to offset capital gains from elsewhere with seg funds.
Regarding risky seg funds, have you looked at SSQ's Seg fund offerings they have some very interesting funds available, many on the risky side I believe they even have hedge fund.
I agree regarding the creditor protection and estate planning.