Investment Funds

Investments Funds
1. Segregated Funs 
2. Non-Registered 
3. GIC (Guaranteed Investment Certificate)


1. Segregated Funds

Segregated Funds are like mutual funds, however what sets them apart is the guarantee they offer of investment protection against possible market downturns. Distributed exclusively by insurance companies, segregated funds are comprised of stocks, bonds or market securities and are managed by experts


Advantages and characteristics

  • Allow you to take advantage of rising markets while offering guarantees against possible downturns at maturity and in the case of death

  • Managed by experienced portfolio managers and include an asset mix that suits all types of investors, whatever their risk tolerance

  • Protect your savings from potential creditors depending on your province of residence

  • Offer quick settlement in the case of death thanks to the designation of a beneficiary

  • May be purchased as an RRSP, TFSA, LIRA, LIF, or a non-registered savings plan

     

2. Non-Registered  

Ideal for short-term and long-term investing.
 

Non-registered accounts are investment accounts offered by banks and financial service providers in Canada. These accounts are a type of brokerage account and may also offer margin borrowing. Many financial advisors recommend using non-registered accounts for short-term and long-term investing. These accounts offer a lot of flexibility with consistent liquidity and no contribution limits. They also include a tax benefit. Capital gains from investments in non-registered accounts are taxable at only 50% of the account holder’s marginal tax rate.

 

Non-registered accounts can be used in conjunction with other types of investment accounts including registered retirement savings plan (RRSP) accounts. Non-registered accounts are sometimes compared to RRSPs. RRSPs have specific requirements for contributions and withdrawals. Withdrawals from RRSPs must be reported as income. At age 71, an RRSP must be converted to a registered retirement income fund (RRIF).

 

A non-registered account can play an important role in your overall investment strategy, especially if you’ve maxed out a registered account like your RRSP. While they’re not tax sheltered, non-registered accounts enable you to invest an unlimited amount of money in an array of investments. A non-registered savings plan is for you if you have reached your RRSP and TFSA contribution limits and would like to continue to save for a project or for your retirement. You will enjoy a higher rate of return than with your bank account and can put money into investment funds. A financial advisor can explain all the investment opportunities at your disposal.

 

Unique benefits of a non-registered savings plan 

  • Save for your future with fewer restrictions

  • Grow your investments to fund your projects

  • Contribute through pre-authorized payments

  • Withdraw funds whenever you want.


 

3. GIC (Guaranteed Investment Certificate)

Low-risk investment, with a guaranteed return.
 

GICs are a specific type of deposit given to a financial institution for a specific period, also called a term. In exchange for lending the financial institution money for a set period, you'll be guaranteed to get your deposit in full as well as interest earned, once you hit your maturity date at the end of the term.
 

As an investment vehicle, GICs have several benefits that can help investors of all types. GIC benefits include a low-risk investment, with a guaranteed return on the amount you invested, and a good option for short-, medium- and long-term goals.

 

A guaranteed investment certificate (GIC) is an investment that works like a special kind of deposit. When you buy a GIC, you are agreeing to lend the bank or financial institution your money for a set number of months or years. You are guaranteed to get the amount you deposited back at the end of the term. For this reason, GICs are one of the safest ways to invest.

 

Remember, investing can be one of the best ways to supercharge your savings and plan for your future — but at the end of the day, it's also a game of managing risk. Depending on your risk tolerance, you may want to have more aggressive investments that garner a higher return, or you can help balance out your portfolio by having lower risk, tried and true investments that can produce a lower return. So, what's the solution to offer security and stability? A great low-risk addition to your portfolio is GICs.


Our qualified consultants will take the time to review your current investment account and see if your investments holding have the right asset allocation and are managed according to your risk tolerance.