Take the 2-minute tour ×  Just starting to look into RESPs for
my kid. There are RESP funds, or I could just throw money in a
GIC... wondering where else I should look... and what I can do.
share|improve this question add comment  1 Answer  Since your
child is 2, he has a long time horizon for investment. Assuming
the savings will be used at age 19, that's 17 years. So, I think
your best bet is to invest primarily in equities (i.e. stock-
based funds) and inside an RESP.  Why equities? Historically,
equities have outperformed debt and cash over longer time
periods. But, equities can be volatile in the short term. So, do
purchase some fixed-income investments (e.g. 30% government
bonds and money market funds), and do also spread your equity
money around as well -- e.g. buy some international funds in
addition to Canadian funds. Rebalance every year, and as your
child gets closer to university age, start shifting some assets
out of equities and into fixed-income, to reduce risk. You don't
want the portfolio tor