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Segregated Funds vs Mutual Funds

By Shannon Lattin • Published November 22, 2021 • 2 Min Read

When considering retirement investment solutions, Canadians want growth, but they also want security. It's a surprise to many to learn that segregated funds—often overlooked—actually offer both.

You want to grow and protect your hard earned savings by investing in a diversified fund line-up, you want easy access to your money, and you want to benefit from your money being professionally managed. We’ll help you get there with this informative comparison chart on some investment options.

At first glance, segregated funds resemble their mutual fund counterparts. Both contain a diversified portfolio of investments and offer professional money management, with easy access to your assets. But segregated funds have some unique features that can complement a diverse investment portfolio:

Principal Protection

  • Maturity guarantees1
  • Death benefit guarantees1

Estate Planning Benefits

  • The ability to bypass probate2


  • Lock in gains on your investment.

Potential Creditor Protection

  • Your segregated fund assets may be protected from creditors in the event of a bankruptcy, which is especially important if you are a business owner or self employed.3

At-a-Glance Segregated Funds vs. Mutual Funds

For those seeking growth potential with protection from market volatility, segregated funds are worth a look. To jump-start your research, below is a complete breakdown of both investment options.

Comparison Chart - Segrated Funds vs Mutual Funds

Insurance can be hard to understand. We’ll help you get it.

Contact an RBC Insurance Advisor to learn more.

1) Withdrawals reduce guarantees proportionately. Guarantees end at age 100.
2) Probate fees and requirements vary by province.
3) You should consult your legal and financial advisor about your individual circumstances.
4) Segregated fund fees are higher than mutual funds, as they include a management fee and an insurance fee component.
5) Non-registered accounts with joint ownership and right of survivorship only (all provinces except Quebec). Registered accounts can bypass probate when a beneficiary is named.


RBC Retirement Investment Solutions

Whether you’re building up your nest egg or ready to turn your hard-earned savings into retirement income, our solutions can help you make the most of your money. Have an RBC Insurance Advisor call you to learn more.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. RBC Guaranteed Investment Funds are individual variable annuity contracts and are referred to as segregated funds. RBC Life Insurance Company is the sole issuer and guarantor of the guarantee provisions contained in these contracts. The underlying mutual funds and portfolios available in these contracts are managed by RBC Global Asset Management Inc. When clients deposit money in an RBC Guaranteed Investment Funds contract, they are not buying units of the mutual fund or portfolio managed by RBC Global Asset Management Inc. and therefore do not possess any of the rights and privileges of the unitholders of such funds. Details of the applicable Contract are contained in the RBC GIF Information Folder and Contract at

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