What percentage of the capital is at risk when a segregated fund offers a 75% maturity guarantee?

In the context of a segregated fund offering a 75% maturity guarantee, the capital at risk refers to the portion of the investment that is not guaranteed at maturity. With a 75% maturity guarantee, the investor is assured they will receive at least 75% of their original investment value upon maturity, regardless of market performance.

To calculate the percentage of the capital that is at risk, you can consider the guaranteed amount versus the total investment. If the total investment is 100%, a 75% guarantee means that the investor could potentially lose 25% of their investment value, as this portion is not protected under the guarantee. Therefore, the percentage of the capital that is at risk is 25%.

Thus, the answer indicating that 25% of the capital is at risk is correct based on the understanding of how maturity guarantees in segregated funds operate, highlighting that the unprotected portion directly corresponds to the difference between the total investment and the guaranteed amount.