RRSP: Mutual Funds vs GIC

You mean that your company is matching your contribution with their money up to a certain amount? Can you transfer it out after a period of time?

GIC, generally has lower ROI, no fees and a simple place to park your money and not worry.
MF, has a greater ROI (depending on risk and portfolio), but has MER fees ranging from 0.1%- 3% etc...

If it were me, I'd choose the GIC option because you will not lose any of your principal and you know exactly how much interest you will get. But that's just me.

You're not gonna make any money on GICs.

Post the list of mutual funds available and how much the company will match your contribution

Consider a balanced fund with under 1% in fees (mer) if available. They tend to be well diversified, I personally have had a good experience with the Mawer balanced fund, if it's available to you I highly recommend it. Like others have said these are only effective as longer-term investments, you will see corresponding ups and downs to the markets.

As previously mentioned, post a list of the funds that they are making available to you and how much they will look to match your contributions by, ex. $1 for $1 up to 6% contributed, etc.

I choose Money Market which has the lowest MER and transfer it out into my own personal RRSP as many times a year as I’m allowed without incurring a fee.

Thank you for the responds!

I can't choose other bank it should be RBC as part of the benefits. I created RRSP account as RBC High Interest eSavings 0.800% because I have no idea what to choose RBC GIC or RBC Mutual Funds.
Can switch to GIC or Mutual Funds anytime. I was told that all available portfolios I can find on RBC site.

GIC: http://www.rbcroyalbank.com/products/gic/index.html
Mutual Funds: http://www.rbcroyalbank.com/products/mutual-funds

RBC Select Portfolios – Built exclusively using RBC Funds and PH&N Funds, two award-winning fund families.

Very Conservative Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f209_e.pdf
Conservative Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f461_e.pdf
Balanced Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f460_e.pdf
Growth Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f459_e.pdf
Aggressive Growth Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f592_e.pdf

RBC Select Choices Portfolios – Brings together some of Canada’s leading and most respected money managers in one convenient portfolio.

Conservative Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f566_e.pdf
Balanced Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f567_e.pdf
Growth Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f568_e.pdf
Aggressive Growth Portfolio http://funds.rbcgam.com/pdf/fund-pages/ ... f569_e.pdf

the issue is not so much what mutual funds or GICs are available to you now, but what are your options when you have a substantial amount invested in the future. If you want to invest in GICs, then it is straight forward that you want to get the highest rate, subject in CDIC insurance or equivalent. That's why it is important to tell us for what period you are locked in and what the transfer out fees may be. Similarly, even though a particular fund has performed well in the past, things may change in the future - the hotshot manager may make bad decisions or leave, the MER may be increased, etc. The bank is counting on people's inertia - keep investing without exploring alternatives. So my advice is to accept your employer's contributions, but don't lock yourself in until you understand your alternavies.