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Find out the Definition, Meaning and Explanation of restricted fund. noun in a not-for-profit organisation, a fund whose assets can only be used for those purposes designated by donors Find out the Definition, Meaning and Explanation of restricted fund. noun in a not-for-profit organisation, a fund whose assets can only be used for those purposes designated by donors
A Segregated Fund or Seg Fund is a type of investment fund administered by Canadian insurance companies in the form of individual, variable life insurance contracts offering certain guarantees to the policyholder such as reimbursement of capital upon death.egregated funds do not issue units or shares; therefore, a segregated fund investor is not referred to as a unitholder. Instead, the investor is the holder of a segregated fund contract. Contracts can be registered (held inside an RRSP or TFSA) or non-registered (not held inside an RRSP or TFSA).