We have heard frequently that "Seg Funds Are Too Expensive!"
Are they? Compared to what are they too expensive?
Compared to Mutual Funds?
If we look at some of the most popular Mutual Funds sold in Canada from various providers, BMO GIF is presently on sale over 15% off!
This is a sale that doesn't just last for Black Friday or Cyber Monday:
Fund Category | Mutual Fund Series A | BMO GIF 75/75 Prestige Class A | Percentage Savings! |
US Equity | 2.64% | 2.25% | 16% |
Global Equity | 2.51% | 2.33% | 7% |
Innovators Fund | 2.36% | 2.30% | 3% |
Balanced Portfolio Managed | 2.46% | 2.11% | 15% |
Global Balanced | 2.45% | 2.35% | 4% |
*MERs as of 12/2/2025. Prestige pricing starts at $250,000 in aggregate assets
Compared to Probate Cost?
If we look at how Seg Funds compare to probate cost savings, Probate is one of the most expensive MERs you'll ever pay.
Probate can erode up to 10% of a client's portfolio.
Sample Cost of Probate (BC)
| Mutual Fund | Segregated Fund |
Market Value at Death | $500,000 | $500,000 |
Probate Fee | $6,650 | $0 |
Legal/Accounting Costs | $13,000 | $0 |
Executor Fee | $20,000 | $0 |
Net Amount | $460,350 | $500,000 |
| Mutual Funds | Segregated Funds |
Bypasses Probate? | No- Probate Fee up to 1.4% | Yes- Depending on setup |
Avoids Legal/Executor Fee? | No- Up to 3% | Yes- Depending on setup |
Avoids Executor Fee? | No- Up to 5% | Yes- Depending on setup |
Time to Settle Estate? | 12-36 Months | 10-15 Business Days |
Preserve Capital Growth? | No | Yes- 100% Guarantees Available |
*Estimated cost of probate as of 7/2022, which will vary based on each estate. Probate Costs vary by province.
Probate amounts are based on assumptions that the whole estate is subject to probate.
There may be additional costs that are not captured
- Equity markets rose this week despite a new round of tariff threats by President-elect Trump
- The S&P 500 rose 1.1%, led by health care and consumer discretionary, while energy and technology lagged
- That leaves the index sitting at a record level heading into the final month of the year