What types of assets can be included in segregated funds?

The correct choice highlights the diverse range of assets that can be included in segregated funds, encompassing cash, fixed income, equity, and commodities.

Segregated funds are unique investment products offered primarily by life insurance companies. They are designed to provide both investment growth and some level of guarantee upon maturity or death. This investment vehicle allows for a mix of various asset classes, which is crucial for diversification and risk management.

Cash and fixed-income assets provide stability and steady returns, while equities offer potential for higher growth through market exposure. Commodities can further enhance diversification, protecting against inflation and market volatility. This breadth of asset types allows investors to align their investment choices with their financial goals and risk tolerance.

The other options inaccurately limit the scope of assets that can be held in segregated funds. For instance, specifying only stocks and options restricts investment possibilities and fails to acknowledge the significant role that bonds, cash, and commodities play in a balanced fund. Similarly, focusing solely on real estate or alternatives ignores the broader investment strategies that many segregated funds employ. By including a wide spectrum of asset types, segregated funds can potentially offer enhanced returns while mitigating risk.