A clone fund is generally a fund that tries to mimic the performance and/or the objectives of a successful existing fund. A common example of a clone fund is when a fund company issues an RRSP version of a foreign equity fund, consisting of derivatives managed in a way that duplicates the returns of the underlying fund. A clone could also be a segregated version of a popular fund, featuring a guarantee issued by an insurance company. Even though the clone funds are similar, they should be judged independently on their own financial merits.
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