A Mortgage Investment Corporation, commonly referred to as a MIC, is a Canadian-based lending company that is funded by investors. Its structure resembles that of a mutual fund in the sense that investors pool their money by purchasing shares in the corporation. The primary difference is that, while mutual funds invest in stocks, bonds and other types of securities, MICs specialize in mortgage investments.

MICs are attractive investment tools because they allow shareholders to take advantage of the high yields associated with mortgage investing, without the responsibilities of becoming a private lender. A dedicated management team oversees the operation's day-to-day activities, allowing investors to collect their returns without spending hours facilitating the lending process.

Individuals looking to diversify their investment portfolio are also drawn to MICs. Because this type of investment is backed by real estate, the rate of return is better defined and the investments aren't directly affected by fluctuations in the stock market.