High risk
Concentrated stocks and sector bets in an RESP
Why concentrated stock or sector bets are a poor core RESP strategy for tuition money, and when a small optional slice might be considered.
Source status: compare this approach with provider documents and regulator guidance before acting. This is not personal financial, tax, legal, or investment advice.
Best fit
Only a small optional slice for experienced investors, not core tuition money.
Typical holdings
Individual stocks, narrow sector funds, or speculative positions.
Main strength
High upside if the bet works.
Watch for
High loss risk and poor fit for money needed on a fixed school timeline.
Questions before choosing
- Is this money needed for tuition on a fixed date?
- What happens to grants if the account value falls sharply?
- Would a diversified core portfolio cover the actual need?
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