A segregated fund is a pool of money, invested in stocks, bonds or Treasury Bills held solely for the benefit of the unitholders of the fund and cannot be touched by creditors of the insurance company. Some mutual fund companies now offer their funds in a segregated form, to meet the demands of their clients for guarantees often through an agreement with an insurance company.

A Mutual Fund Is a pool of money invested in a portfolio of investments with defined investment objectives and will be placed in the money market, bonds, stocks, real estate, precious metals and other securities.