While a segregated fund and a mutual fund share many similarities (professionally managed investment funds that pool money from multiple investors to purchase securities and other financial products), there are key differences between the two that investors should be aware of. Segregated funds fall under insurance legislation (Individual Variable Insurance Contracts), meaning they gain access to some crucial perks, such as the ability to directly name a beneficiary. Naming a beneficiary on non-registered accounts is not traditionally allowed with mutual funds. What’s the advantage to naming a beneficiary directly on investment accounts? The ability to bypass the will and the lengthy, costly and complex probate process. This provides liquidity and confidentiality for the policy owner and beneficiaries. Additionally, segregated funds offer maturity and death benefits guarantees, providing further protection to investors against market downturns. However, segregated funds do traditionally result in higher fees than mutual funds, so it is important for investors to evaluate the different investment options and make a decision based on their individual circumstances, goals and objectives.