Submitted by nsscadmin on
One of our readers has RRSP and TFSA accounts and knows that they can be used to hold most kinds of investments. They’ll soon be starting an RESP account as well and wondered what kind of investments it can it hold.
Before listing the investments that can be held in an RESP, let’s explain why knowing this information can be useful. One major thing that differs between an RESP and an RRSP is the time horizon. If I start investing in an RRSP account when I’m 20 years old, I most likely won’t start using that money for at least 35 years. If I open an RESP for my child when they are born, the average time that will pass before that money is needed is 18 years. RESPs have a much shorter time horizon and can make the kind of investments in them very different.
Like an RRSP and TFSA, an RESP can be used to hold most types of investments. This includes securities such as bonds, GICs and cash. RESPs may also include investments such as , mutual funds and ETFs, which can be made up of fixed-income and equities. If you have questions about the investment mix in your RESP and how it best sets up your child for financial success when funding their post-secondary education, talk to your adviser.