Which Investments Have the Highest Return in Canada?

If you’ve ever wondered, “Where should I put my money to get the best return in Canada?”—you’re not alone. Canadians today face more investment choices than ever: stocks, real estate, segregated funds, and tax-advantaged accounts like TFSAs and RRSPs.

But here’s the catch—there’s no one-size-fits-all answer. High returns often come with higher risks, and the best option depends on your financial goals, timeline, and tax strategy.

This guide will walk you through the top investment options in Canada, including taxable vs. tax-free accounts, different types of funds, and even how life insurance products like Whole Life and Universal Life (UL) can act as wealth-building tools.

Historically, stocks and equity-based ETFs have delivered some of the highest long-term returns.

• Individual Stocks: Growth companies like Shopify or banks like TD and RBC.

• ETFs (Exchange-Traded Funds): Diversified, lower cost, and less risky than picking single stocks.

• Segregated Funds & Mutual Funds: Professionally managed, though often with higher fees.

Average return potential: 6–10% annually (long-term).

Property investment continues to be a Canadian favourite, especially in hot markets like Toronto, Vancouver, and Montreal.

• Rental income + property appreciation = strong returns.

• REITs (Real Estate Investment Trusts) offer a way to invest without managing property directly.

Average return potential: 5–8% annually, higher in booming markets.

When Canadians think about investing for higher returns, mutual funds and segregated funds often come up. Both give you access to professionally managed portfolios, but there are key differences you should know.

📌 Mutual Funds

• Pool money from many investors to buy stocks, bonds, or other assets.

• Offer diversification and professional management.

• Generally higher long-term return potential compared to GICs or savings accounts.

• Downside: returns aren’t guaranteed, and they don’t include added protections.

📌 Segregated Funds

• Similar to mutual funds but offered through insurance companies.

• Provide investment growth + insurance benefits like:

  • Principal protection (75% – 75% | 75–100% | 100% – 100% guarantees at maturity or death).

  • Creditor protection (helpful for business owners and professionals).

  • Faster estate settlement by bypassing probate.

• Slightly higher fees than mutual funds, but the safety net can be worth it.

💡 Quick Takeaway:

• If you want higher returns and don’t mind risk → Mutual Funds.

• If you want growth plus insurance-style guarantees → Segregated Funds.

Average return potential: 5–8% annually, depending on the market and fund type.

How you invest matters just as much as what you invest in. Let’s break down the most common Canadian accounts:

• TFSA (Tax-Free Savings Account): Grow your investments tax-free. Withdraw anytime without penalties. Perfect for both short- and long-term investing.

• FHSA (First Home Savings Account): New account helping Canadians save for their first home. Contributions are tax-deductible, and withdrawals for a qualifying home are tax-free.

• RRSP (Registered Retirement Savings Plan): Contributions reduce taxable income now, but withdrawals in retirement are taxed. Best for long-term retirement saving.

• RESP (Registered Education Savings Plan): Great for parents saving for their kids’ education, with government grants available.

• RDSP (Registered Disability Savings Plan): Designed to support long-term financial security for Canadians with disabilities.

• Whole Life Insurance: Offers lifelong coverage and builds guaranteed cash value.

• Universal Life (UL): Combines insurance with flexible investment options inside the policy.

These products aren’t just insurance—they can be powerful wealth-building tools.

✅ Start Early: Compounding is your best friend—time in the market beats timing the market.

✅ Diversify: Spread investments across stocks, real estate, funds, and insurance-based options.

✅ Use Tax-Sheltered Accounts First: Max out your TFSA and RRSP before investing in taxable accounts.

✅ Don’t Ignore Insurance: Segregated funds, UL, and Whole Life can add stability and security to your portfolio.

✅ Work with a Financial Professional: Personalized advice ensures your investments align with your goals.

So, which investments truly offer the highest return in Canada? The stock market and real estate historically take the crown—but how you invest (through tax-free accounts like TFSA, RRSP, or insurance products like segregated funds) can make just as big a difference as where you invest.

The smartest investors don’t just chase returns—they balance growth with protection, tax efficiency, and long-term goals.

I help Canadians design investment strategies that combine growth, tax advantages, and protection. Whether you’re just starting out or looking to maximize wealth, I can help you build a tailored plan.

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