2 Canadian Growth Stocks I’d Invest in a TFSA for Decades

Canada Goose Holdings (TSX:GOOS) and another growth stock should have TFSA investors’ attention this April.

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Young TFSA (Tax-Free Savings Account) investors may wish to shift gears into growth mode if they’re a tad too heavy on cash and defensive investments, unless, of course, they expect sizeable expenses to arise in the near future (think a down payment on buying a first home, a first child, or the pursuit of an advanced degree).

For Millennials and perhaps Gen Z (the Zoomers, as they’re often referred to in media) who have a sum that they simply do not see spending over the next three, five, or even eight years, I’d argue it makes sense to adopt a more growth-focused strategy.

Indeed, the longer your time horizon, the better off you’ll be and the lower the investment risks you’ll need to take on. Unlike bonds and other fixed-income debt securities, equities tend to become less risky the farther your investment horizon is.

Growth investing with your TFSA portfolio

So, if you’re a young investor who can invest for the next 10 years (or more), either to fund a comfortable (perhaps early) retirement, a down payment on a home in a major Canadian city, a child’s education, or anything in between, I’d argue the TFSA is a powerful tool to get the job done.

Of course, there are other accounts specific to the purpose (let’s say Registered Education Savings Plans for saving for educational expenses down the line or First Home Savings Account for a first-time home buyer).

That said, I value the TFSA because of its flexibility. Simply put, it doesn’t matter what you’ll use the funds for.

At writing, I view Constellation Software (TSX:CSU) and Canada Goose Holdings (TSX:GOOS) as great growth bets to consider for any young investor’s TFSA growth fund.

Constellation Software

Constellation Software is a great Canadian company that could make an even bigger splash in the realm of tech unicorns. The firm could get active on the mergers and acquisitions (M&A) front regarding the venture capital (VC) types of plays moving forward. Indeed, it’s tough for small retail investors to gain the type of explosive growth that VC investing can offer.

With the rise of generative artificial intelligence, I’m sure many new creative startup ideas are floating around. And if there are some that show promise, perhaps Constellation may be able to make the most of the opportunities at hand. Either way, I’m a big fan of Constellation’s managers and their ability to unearth hidden gems across the nation.

Canada Goose Holdings

From Canada’s tech scene to luxury outerwear, we have Canada Goose Holdings, which is currently in the midst of a multi-year rut. Undoubtedly, sales haven’t been booming, not amid inflation and the slew of other macro headwinds hitting consumers right in the wallet. As consumer sentiment improves and Canada Goose takes steps to trim costs, I think the stage could be set for a nice relief rally at some point down the road.

The company recently slashed 17% of its corporate jobs, a move that’s not become commonplace across the apparel scene. Indeed, it’s an ugly environment for certain retailers out there. Regardless, the Goose will survive and live to fly higher again, perhaps on the back of a Chinese economic rebound.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Constellation Software. The Motley Fool has a disclosure policy.

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