Investment Solutions
Mutual Funds
Mutual funds, including our exclusive Quadrus Group of Funds, are offered through our mutual fund dealer, Quadrus Investment Services Ltd.
Mutual funds allow individuals to pool their savings in a portfolio of investments managed by professional money managers. Because of the large amount of money in the pool, mutual funds can diversify a portfolio more widely than an individual may be able to when investing on their own.
Registered retirement savings plan (RRSP)
Registered education savings plan (RESP)
Registered retirement income fund (RRIF)
Tax-free savings account (TFSA)
Registered disability savings plan (RDSP)
Features & Benefits
Mutual funds offer a number of features and benefits, including:
Liquidity
Mutual fund units may generally be redeemed at any time. The redemption value will depend on the unit value on the day of redemption and may be lower or higher than the purchase price.
Diversification
While an investment in a single company or industry exposes an investor to the ups and downs of that company or industry, mutual funds allow investors to diversify their portfolios among many different companies and industries within Canada and across the world. Through a selection of funds managed by different fund managers, investors may also benefit from the diversity of investment styles.
Returns
Mutual funds offer the potential for higher returns compared to guaranteed investment certificates (GICs) and deferred annuities. However, mutual funds also carry more risk.
Professional management
Unitholders benefit from the expertise of professional managers who have training and experience in the investment field. Fund managers continually research and monitor markets, trends and the companies in which they invest to maintain proper diversification and to maximize returns consistent with the fund’s objectives.
Cost-effectiveness
Mutual funds are one of the most cost-effective ways to own a diversified, professionally managed portfolio. Mutual funds allow you to invest in several different companies at a fraction of the cost of buying individual units of each of the companies in similar proportions to the mutual fund.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
Segregated Funds
Like a mutual fund, a segregated fund pools money from thousands of investors which professional fund managers invest in a variety of securities. Segregated fund policies are only available through insurance companies and take the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death. As required by law, these funds are fully segregated from the company’s general operating funds.
Advantages for some investors include:
Death Benefit & Maturity Guarantees
Segregated fund policies protect part or all of your capital investment. Canada Life offers two types of capital guarantees—death and maturity guarantees.
Estate Bypass
When you designate a beneficiary other than your estate, the value of your segregated fund policies flows directly to the beneficiary, generally bypassing the estate and potential probate fees.
Creditor Protection Potential
Laws may protect a segregated fund policy in the event of bankruptcy or other action by creditors. It’s important to note that potential creditor protection depends on court decisions, which can be subject to change and can vary for each province. This protection cannot be guaranteed.
Any amount allocated to a segregated fund is invested at the risk of the policy owner and may increase or decrease in value.
