Which investment is ineligible to be held in an RRSP?

The investment that is ineligible to be held in a Registered Retirement Savings Plan (RRSP) is commodity futures contracts. RRSPs are designed to provide tax-advantaged savings for retirement, and as such, they have specific regulations regarding what types of investments can be included.

Commodity futures contracts are agreements to buy or sell a specific amount of a commodity at a predetermined price at a specific time in the future. These contracts are considered speculative and can be very volatile, which generally doesn't align with the long-term investment strategy that RRSPs are intended to promote. Canadian tax laws aim to protect retirement savings from high-risk investments, and commodity futures fall into this category due to their inherent risks and market sensitivity.

In contrast, government bonds, stocks and shares, and mutual funds are generally considered suitable investments for RRSPs. These investments are typically more stable and have established market demand, making them appropriate for a retirement savings plan that aims to grow assets over time while providing certain tax benefits.