Which of the following statements is true about segregated funds?

Segregated funds are unique investment products offered by insurance companies that provide certain guarantees to investors, making them attractive for those seeking an element of security in their investment strategy. The inclusion of guarantees refers specifically to features such as principal protection or minimum returns, which can help safeguard an investor's capital against market volatility. This aspect is particularly appealing to conservative investors or those who are risk-averse because it provides peace of mind that a certain percentage of their investment will be returned upon maturity or in the event of a death claim.

The guarantees associated with segregated funds can vary but typically include investment protection at the maturity date and death benefit guarantees. This level of security is a distinctive characteristic that does not typically exist in standard mutual funds, which are subject to market risk and do not offer such assurances.

While segregated funds share some similarities with mutual funds, including their investment structure, they have specific regulatory frameworks since they fall under insurance regulations rather than the typical securities regulations governing mutual funds. This distinction impacts the level of oversight and investor protections available, but doesn't make them less regulated in the broader context.

Overall, the guarantees offered by segregated funds are a significant advantage, making them a preferred option for certain investors looking for security in their investment portfolios.