Which feature of segregated funds helps in protecting against market declines?

The insurance component of segregated funds is designed to provide a level of protection against market declines. This feature typically includes a death benefit and a maturity guarantee, which means that investors are assured a minimum payout, regardless of the fluctuations in the market. Specifically, the maturity guarantee ensures that at the time the investor redeems the fund, they will receive at least a pre-defined percentage of their original investment, provided the investment is held for a specified duration.

This protection becomes particularly valuable during periods of market downturns, as it mitigates the risk of losing capital. By offering this type of insurance, segregated funds enhance investor confidence and allow individuals to participate in market investment opportunities while knowing that they have a safety net in place. The other options, while they may add value to the investment strategy, do not directly relate to the protective features that safeguard an investor's capital in volatile market conditions.