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Guaranteed
investment funds are also known as segregated funds. They provide investors
with the growth potential of a mutual fund with the security of a principal
guarantee.
What this means to investors is that they can take control of risk (with
principal guarantees of up to 100% at maturity or death), while building
strong assets for the future.
The monies
deposited into guaranteed investment funds by the investor are segregated
by the insurer from its general assets. The insurance company invests
the monies in mutual funds as directed by the policyholder. In this
way the investor can benefit from increases in value of the underlying
mutual fund with the principal value protected by a guarantee given
by the insurer.
Guaranteed Investment Funds also provide individuals
with :
• The growth potential of mutual funds
with the security of principal guarantees
• Maturity and death benefit guarantees
• Ability to lock in profits utilizing reset features which do
not trigger capital gains
• Investors when the market value is in excess of their original
investment can lock in gains
• Potential to creditor proof ones assets. For business owners
and self employed professionals which can include doctors and dentists,
it may be important to protect ones assets in case of litigation or
bankruptcy.
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