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- RBC segregated funds offer 75%-100% capital and death benefit guarantees
- RBC seg funds are available in Invest Series, Series 1, and Series 2, each catering to different risk levels
- Series 2 includes reset features to lock in market gains and offers the highest level of protection
- RBC segregated funds are a good choice for investors focused on protection and estate planning
RBC Insurance is part of Royal Bank of Canada, one of the largest and most trusted financial institutions in Canada. With a long-standing reputation in banking, wealth management, and insurance, RBC also offers investment products to meet the diverse needs of investors in Canada, including segregated funds.
Unlike traditional mutual funds, segregated funds provide capital protection at maturity and death, along with other features. In this guide, we take a detailed look at RBC segregated funds, the types of investment options available, their key features, and whether they are worth considering for your financial goals.
Our RBC segregated funds review
RBC Insurance offers segregated funds that are structured to cater to a wide range of investors, from beginners just starting their investment journey to those focused on retirement income and estate planning. One of the biggest advantages of RBC segregated funds is how accessible and flexible they are.
RBC Guaranteed Investment Fund (GIFs) also makes it relatively simple to begin investing in segregated funds. You can start with as little as $50 per month by setting up a pre-authorized debit (PAD) plan. This low entry point makes RBC GIFs accessible to first-time and budget-conscious investors.
Another key strength of RBC’s offering is the flexibility in how and where you can hold your investments. RBC GIFs can be placed within a variety of registered and non-registered accounts, including RRSPs, TFSA, RRIF, LIF, or locked-in plans. Moreover, when it comes to investment choice, RBC lets you choose from 28 guaranteed investment funds and 8 portfolio solutions.
The three popular segregated fund options that the company offers include Invest Series, Series 1, and Series 2. Overall, RBC segregated funds stand out for their combination of ease of entry, broad investment choice, and simplified portfolio options. We recommend RBC segregated funds for those who want flexibility and a structured way to invest.
What types of segregated funds does RBC offer?
RBC offers two broad types of segregated funds that we will discuss in the section below:
1. Invest Series
RBC Invest Series is designed for those investors who are looking for higher growth at lower fees. Some of its key features and benefits include:
- Death benefit guarantee: The Invest Series offers a death benefit guarantee of 75% of your deposit or the market value, whichever is higher. Its maturity guarantee mostly kicks in only at age 100, so for most, the Invest Series is more about the death benefit protection, not a maturity payout
- Lower fees compared to other series: Since the guarantees are more limited, the cost is lower. This makes the Invest Series one of the most cost-effective entry points into RBC segregated funds
- Individual fund choice: With the Invest Series, you can choose from 25 funds, including specialty funds. You can also switch between funds, allowing your portfolio to evolve as your financial goals change. These funds are professionally managed by RBC Global Asset Management, ensuring that investment decisions are backed by research
- Wide portfolio solutions: The Invest Series lets you choose from 8 portfolio solutions. The portfolios are actively monitored, helping manage risk over time without requiring investor intervention
Who is it best suited for?
It is suitable for those who:
- Are looking for long-term growth and flexibility
- Are planning for retirement savings
- Want protection but not keen on maximum guarantees
- Prefer diversification of their investments
2. Series 1
Series 1 offers a middle level of protection and is designed for investors who want a balance between growth potential and stronger guarantees, making it one of the most versatile options within RBC’s segregated fund lineup.
Its key features and benefits include:
- Death benefit: Unlike the Invest Series, Series 1 provides up to 100% of your deposits or the market value (whichever is higher) if death occurs before age 80. After the age of 80, this guarantee reduces to 80%
- Maturity guarantee: RBC GIF Series 1 has a built-in maturity guarantee, which helps protect your investment over the long term while still allowing you to participate in market growth. Under this structure, after a 10-year maturity period, you are guaranteed to receive the higher of 75% of your original deposits or the current market value of your investment
- Investment options: RBC GIF Series 1 also offers diverse options when it comes to fund choice. It lets you choose from 23 available fund options, which include money market funds, fixed income funds, balanced funds, and equity funds. This fund variety allows investors to build a customized portfolio aligned with their risk tolerance
- Balance between cost and security: Fees are higher than the Invest Series due to stronger guarantees, but still moderate compared to higher-protection options like Series 2
Who is it best suited for?
Series 1 is the right choice if you:
- Want to protect your funds against market fluctuations
- Prefer passing the maximum to your loved ones
2. Series 2
Series 2 is the most protection-focused option within RBC segregated funds. It offers the highest protection and lets you lock in gains even when markets rise. The key features and benefits of Series 2 include:
- Death benefit guarantee: The death benefit guarantee is the same as Series 1, offering 100% protection of your deposits if death occurs before age 80, and 80% protection thereafter. In both cases, if the market value is higher, that value is paid out instead
- Maturity guarantee: Series 2 provides a maturity guarantee that ensures, after a 10-year period, you will receive the higher of 75% of your total deposits or the current market value of your investment. This feature helps reduce the impact of long-term market volatility by protecting a significant portion of your capital, while still allowing you to fully participate in any market growth
- Reset option: Unlike the other two options, Series 2 includes the option to reset your guaranteed values annually, 1 per year until age 90, allowing you to lock in market gains as your investment grows. This means that if your portfolio performs well, you can increase the guaranteed value to reflect the higher market level. Over time, this feature can significantly enhance both your maturity and death benefit guarantees
- Investment options: Series 2 offers a choice of 11 individual funds and 8 portfolio solutions. This combination allows investors to align their portfolios with their risk tolerance
Who is it best suited for?
Series 2 is a good choice for those who:
- Want to lock in their investment in case the market goes up
- Prefer maximum protection against any dip in the market
- Are retirees or near-retirees
RBC segregated funds pros and cons
| Pros | Cons |
| Strong capital protection guarantees (75%-100%) | Higher fees than mutual funds |
| Assets can pass directly to beneficiaries, often bypassing probate | You usually need to hold the investment for a set period (often 10 years) to fully benefit from guarantees |
| Up to 100% of your deposits can be protected for beneficiaries (depending on series and age) | |
| Reset features in Series 2 allow you to secure market gains and increase your guaranteed value over time | |
| Funds are managed by experts, offering diversification across asset classes and global markets | |
| Access to multiple funds and portfolio solutions | |
| Investment can start with as little as $50/month, making it accessible for new investors |
What other investment products does RBC offer?
In addition to segregated funds, RBC also offers the following investment products:
- Mutual funds and portfolio solutions: Mutual funds and portfolio solutions offered by RBC are designed for investors seeking professional management and diversification. Mutual funds pool money from multiple investors and invest across equities, bonds, and other assets, helping spread risk while aiming for long-term growth. It offers more growth potential than GICs or savings deposits
- Guaranteed investment certificates (GICs): Guaranteed Investment Certificates (GICs) are a low-risk investment option that focuses on capital preservation and predictable returns. This lets you secure investments that can guarantee 100% of your original investment. They are ideal for conservative investors or for short- to medium-term financial goals, offering stability and certainty
- Payout annuities: Payout annuities are designed to convert your savings into a guaranteed income stream during retirement. These annuities can be structured to provide income for life, for you and your spouse, or for a fixed period, depending on your needs. They also support estate and tax planning, as payments can continue to a beneficiary for a guaranteed period and may bypass probate
Are RBC segregated funds worth considering?
RBC segregated funds are worth considering if your financial priorities include capital protection, risk management, and efficient estate transfer. The company offers a structured approach to investing, combining growth with guarantees.
How to buy RBC segregated funds?
To buy RBC segregated funds, you can get in touch with our advisors at PolicyAdvisor. Here’s what you need to do:
- Reach out to our advisors: Our experts at PolicyAdvisor will evaluate your financial goals, time horizon, risk tolerance, and estate planning needs and recommend suitable options for segregated funds
- Review and compare available options: Our advisors will help you choose a suitable RBC segregated fund option, as well as compare options to help you choose the best one
- Complete your investment setup: Once you have selected a plan, you will finalize the contract by naming beneficiaries, choosing guarantee options, selecting funds, and deciding how much to invest
Frequently asked questions
What guarantees do RBC segregated funds offer?
RBC segregated funds typically offer a 75% maturity guarantee and up to 100% death benefit guarantee (before age 80), ensuring a portion of your investment is protected even if markets decline.
What is the difference between Invest Series, Series 1, and Series 2?
The Invest Series focuses on lower fees and growth potential with basic guarantees. Series 1 offers a balance between growth and protection, while Series 2 provides the highest level of guarantees along with features like annual resets to lock in gains.
What are the key features of RBC segregated funds?
RBC segregated funds offer features like capital protection guarantees (typically 75%-100%), death benefit protection for beneficiaries, and the ability to lock in gains through reset options (in Series 2). They also provide access to multiple funds and portfolio solutions, professional management, and flexible investment options across registered and non-registered accounts.
How does the reset feature in Series 2 work?
The reset feature in Series 2 allows you to lock in market gains by increasing your guaranteed value to the current market level. This can typically be done annually until age 90, helping protect growth from future market declines and enhancing both maturity and death benefit guarantees.
Who should invest in RBC segregated funds?
RBC segregated funds are suitable for investors who value capital protection, estate planning benefits, and structured investing. They are especially useful for pre-retirees, retirees, and conservative investors who want a balance between growth and security.
RBC segregated funds combine market growth with insurance protection, offering capital guarantees, estate planning benefits, and flexible investment options. With Invest Series, Series 1, and Series 2, they cater to different risk levels and are suitable for long-term, protection-focused investors.
