The Best Investments for a Self Directed RRSP

There are many different types of investments you can have in your self-directed RRSP – here is a list of the most common:

  • Mutual funds
  • Common and preferred shares of Canadian corporations listed on any Canadian and many foreign stock exchanges
  • Fixed income securities including bonds, debentures, strip bonds and notes that are:
    • issued by a corporation that has shares listed on a Canadian stock exchange
    • issued by a Canadian government (federal, provincial or municipal)
    • guaranteed by the Government of Canada
  • Many foreign shares and fixed income securities
  • Canadian and Provincial Treasury Bills (T-bills), Canada Savings Bonds and Provincial Savings Bonds
  • Term Deposits, GICs and cash in Canadian currency
  • Options to purchase eligible securities
  • Mortgages

Self-directed RRSPs are held with an institution such as your discount broker. This allows you the annuitant to purchase any eligible investment inside of your RRSP.

Allowed Strategies in RRSPs:

RRSPs held at a bank or a single mutual fund company as trustee can only purchase products offered by that institution.

Inside an RRSP you may trade only the following strategies: 1) covered calls, 2) long call, and 3) long put. Vertical spreads both long and short and other strategies are not permitted.

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