RICHMOND, VANCOUVER BC– July 28, 2015– Award-winning and inspiring business leader and financial services expert, Perminder Chohan has posted a new article on the Desjardins Financial Security Independent Network website entitled, “Understanding the Difference Between Segregated Funds and Mutual Funds” for the benefit of small business owners.

Chohan states, “If you are a small to medium size business owner beginning to explore providing group savings and investing plans for your employees, you have several options. Typically businesses offer a managed mutual fund or segregated funds or a combination of both.”

By pointing out the various similarities and differences between the two types of funds Chohan provides at least a starting point for business owners. According to Chohan, “While both mutual funds and segregated funds share some basic similarities, they also have key differences that must be understood. Historically, mutual funds have been the choice of many businesses as they provide a relatively inexpensive method of investing.”

The similarities are fewer than the differences, which Chohan establishes. He writes, “Both mutual funds and segregated funds provide the opportunity to pool funds for investing purposes. A third party makes the allocation decisions and all investment related choices. Likewise, all financial assets within each mutual fund are owned by the organization managing the pool of investments while the investors in the fund own an interest of the assets.”

Chohan goes on to guide readers through the differences stating, “The primary difference between mutual and segregated funds is that segregated funds are considered insurance products sold by insurance companies. This means that the governing bodies and regulations for overseeing segregated funds are usually the same ones that cover insurance companies.”

In addition, Chohan elaborates, “Segregated funds, unlike mutual funds generally offer a degree of protection against losses. For example, most segregated funds will guarantee around 75-100% of premiums paid (minus management and other related costs) in the event of the policyholder’s death or upon maturity of the fund. With mutual funds, if all the stocks in the mutual fund were to lose their value, investors would lose all of their investment. “

The entire article can be found at http://www.dfsinrichmondsouth.ca/understanding-the-difference-between-segregated-funds-and-mutual-funds/

About Perminder Chohan

Mr. Chohan started his career in the financial services industry when he joined a Registered Education Savings Plan company in 1998. In six short months, he became their number one agent nationally. In 2003, Mr. Chohan expanded his career spectrum and started in the life insurance industry. Since then he has been instructional to over 200 agents in their career training and development. In 2009, Mr. Chohan joined Desjardins Financial Security Independent Network as a managing director. His office has since proliferated with great business success.

Under Mr. Chohan’s leadership, the financial centre received multiple top awards from the network in categories such as recruiting, business growth and total sales for a centre with less than 50 associates. As of beginning of the fall this year, Mr. Cohan’s team once again leads in sales, recruiting and growth.

About Desjardin Financial Services

Desjardins Financial Security Independent Network with its Quebec counterpart, SFL Partner of Desjardins Financial Security, is a national financial products and services distribution network. All together, the network has over 40 financial centres and more than 1500 independent representatives across Canada.

At Desjardins Financial Security Independent Network, every associate is an independent representative in partnership with the network. This means that our financial services advisors are not limited to a single line of products, and we’re not tied to a specific investment management company or insurance provider. We look at our clients’ individual needs and guide them in choosing the services and products that are right for them.

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