What is the typical target audience for segregated funds?

The target audience for segregated funds primarily includes individuals who seek a blend of investment and insurance features in a single product. Segregated funds are essentially mutual funds offered by insurance companies that not only provide the growth potential associated with investment funds but also include insurance benefits, such as a death benefit and maturity guarantee.

This combination makes them particularly appealing to individuals who are concerned about market volatility but still want the opportunity for capital growth. The insurance features offer a level of security that traditional investment products may not provide, thereby attracting investors who prioritize the protection of their capital alongside their investment goals.

In contrast, while high net worth individuals may also be interested in segregated funds, they are not the exclusive target audience. Similarly, individuals solely seeking maximum returns or institutional investors typically look for different investment vehicles that do not offer the same insurance component found in segregated funds. Hence, the unique combination of features targeted at individual investors who require both insurance and investment solutions rightly identifies this audience.