Laura, a 50-year-old, is considering investing in a pooled segregated fund. She is concerned about potential market downturns impacting her principal. Which feature of segregated funds would be most appealing to her specific concern?

Question: Laura, a 50-year-old, is considering investing in a pooled segregated fund. She is concerned about potential market downturns impacting her principal. Which feature of segregated funds would be most appealing to her specific concern?

Answer options:

• Access to a wide range of underlying investments.
• The potential for creditor protection in case of bankruptcy. ✅ Principal guarantees, typically 75% or 100% of the invested capital at maturity or death.
• The ability to bypass probate upon death, saving estate settlement costs.

Correct answer: Principal guarantees, typically 75% or 100% of the invested capital at maturity or death.

Explanation: Segregated funds often include principal guarantees, which provide a level of protection for the investor's capital, typically promising a certain percentage of the initial investment back at a specified maturity date or upon death, directly addressing Laura's concern about market downturns.