Banks and other financial institutions offer mutual funds in a variety of flavours. Life insurance companies offer a similar product called seg funds (or seggregated funds). Because seg funds are offered by life insurance companies, there are a few ‘insurance’ type differences with these financial products that are not available with a traditional mutual fund. Through the years, however, mutual funds have changes so that the differences between the two investment products are no longer so apparent. The remaining and largest difference with seg funds however, is the ability to have a minimum guarantee on deposits. That’s right – with seg funds your deposits are subject to a minimum guarantee if your investments crash. Seg funds also have a death benefit guarantee but for the purposes of this article I’m going to ignore this as irrelevant.