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My wife who is Canadian (we were married in Dec 1999) and I have been going over our investments and she showed me her RRSP. She does not know much about investing so she put her money in a group of funds called the Ethical Funds. I know the rules about 80% investing in Canada (in fact her US stock fund has to keep being divested and she has put them into the other Ethical Funds, things that are at 6% or worse -even losing money within the fund.) The funds are full of bond investments (even the growth funds) or are heavily into slow or no growth industries. I have been trying to do some research (are JDSU and Nortel Canadian companies BTW??) but just dont have the information easily available. Of course then I realized that TMF boards are a wonderful place to get educated.

So,

1) Does investment in Canada mean government bonds and funds or can it be companies that are solid that are based in Canada?

2) Are there instruments/tools that can be RRSPs but have stocks in them instead of using a fund?

3) Are their index funds for the TSE (see, I am learning) and are they any good?

4) I am glad to do DD but are there any "Foolish Four" type models that work in Canada because I cant really do a lot more research given my US research.

Thank you so much

Mike
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mburke555,
Here is a quick a dirty answer.
JDSU (Nasdaq) is not allowed in an RSP. JDU (Toronto) is 100% Canadian content and is allowed.
Ditto for NT (Toronto)

About your questions:
1) You can put your 75% (the rules changed this year) in anything Canadian. That includes stocks, bonds, funds, etc. as long as they are based in Canada.

2) You can set up a self directed RRSP at any bank and use the money to buy whatever you want, as long as you meet the Canadian content rules. An example is an Action Direct account at the Royal Bank. There are others.

3) If you want an index fund, your bank will probably have a S&P500 index shadowing fund that is still allowed in an RRSP (they use derivatives instead of stock.)

4) You need other answers. There is lots of discussion on this board and the Canadian General board on this topic. Try the FAQ.

Good luck,

tallships
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In addition to what tallships said, see also this post on the Canada general board:
http://boards.fool.com/Message.asp?id=1050002003734001&sort=postdate

You can set up a self directed RRSP at any bank and use the money to buy whatever you want

For the most part this is true but there are exceptions - for example, you cannot short stock within an RRSP and I think options are also not allowed.

palsan
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Palsan said:
For the most part this is true but there are exceptions - for example, you cannot short stock within an RRSP and I think options are also not allowed.


Just for the record, call options, which is an exciting way of watching the current market, are allowed in RRSPs.

mondo
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3) Are their index funds for the TSE (see, I am learning) and are they any good?

Yup, there are. There are many index mutual funds to track the TSE300. Every major Canadian mutual fund company will have one. You can also buy i60 units (TSE:XIU) which represent the TSE/S&P60 (60 top Canadian stocks) and trade on the stock exchange like SPDRs or QQQs.

4) I am glad to do DD but are there any "Foolish Four" type models that work in Canada because I cant really do a lot more research given my US research.

Yup again. Check out the "Beating the TSE" board.
http://boards.fool.com/Messages.asp?id=1050013000000000

Thanks,
Shawn
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Thanks everybody for your answers. I really appreciate them and will get on the job of increasing returns with the help you all provide.

Mike
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