RRSP eligible should really only be used to apply to investments that may be held inside an RRSP, regardless of whether special rules or conditions apply. Often, however, this term is loosely used to describe only those investments that you can hold without limit. Traditionally, self-directed plans have been most popular with people who want to hold individual stocks in their plan. Another common reason to set up a self-directed plan is to take further advantage of the 25 per cent foreign content rule and capitalize more on investment opportunities outside of Canada. But even if you only want to hold GICs or perhaps mutual funds in your RRSP, they may warrant a second look.
Many foreign markets are decidedly unvolatile.
And even the more dynamic markets can offer strong returns over the long haul. More importantly, you don't need to be concerned about a single market dipping or diving unless you have a good deal of money tied up in that specific country. The way to avoid that, of course, is to diversify. Spread the foreign component of your RRSP throughout a region, or even the entire world, using mutual funds. These aren't borderline strategies for sophisticated investors.