A client is deciding whether to use a direct investment strategy or a managed mutual fund for their $200,000 RRSP. How does the account type influence this decision?

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In an RRSP, capital gains and losses are not personally taxable; therefore, the tax-loss harvesting benefit of direct investing is lost. A managed product is often preferred here for its operational convenience and automatic rebalancing.

A client is deciding whether to use a direct investment strategy or a managed mutual fund for their $200,000 RRSP. How does the account type influence this decision?

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