Mutual Funds were introduced in Canada in 1932, providing investors with an easy way to diversify their savings in stocks, bonds and other securities without having to be experts. Today, half of all adult Canadians invest in mutual funds, and they do so for the very same reason they did when funds were introduced: convenience, security, affordability, diversification and expert management. Click here for more information.
GICs (Guaranteed Investment Certificate) are sold by banks, credit unions and trust companies. The financial institution promises to pay interest and repay principal, and this promise is backed by the bank’s financial reserves. Interest is generally quoted at an annual rate, although it may be credited to the account more frequently.
An annuity is a financial product that you buy from a life insurer who, in turn, pays you a regular income for a fixed period, or for the rest of your life. Annuities are ideal for transforming a lump sum payment into a dependable income stream. Annuities can provide stable and secure income payments for life and there is not need to manage investments.
Segregated funds are an insurance product with investment features, they are the insurance industry’s version of mutual funds. They hold investors’ pooled money, which the manager of the fund invests in stocks, bonds or other assets, depending on the fund’s investment objectives. While similar to mutual funds in many ways, segregated funds offer unique advantages and guarantees that mutual funds do not.