Non Registered Investments are different from Registered Investments only in that growth is taxed as it happens, depending on whether the investment provides capital gains, dividends or interest. Each type provides its own tax structure, some better than others.

Capital Gains:
An increase in the value of a capital asset that gives it a higher worth than the purchase price. Capital Gains are effectively the growth on a specific type of investments. The capital gain inclusion rate in Canada is currently 50%.

Dividends:
An amount distributed out of a corporation's retained earnings (accumulated profits) to shareholders. Dividends on preferred shares will usually be for a fixed amount. Dividends on common shares may fluctuate depending on the profits of the company. Dividends are generally grossed up by either 125% or 145%, depending on whether or not they are eligible or ineligible.

Interest:
Is the most inefficient form of growth. Every dollar that the original investment grows is taxable compared to 50% of growth in capital gains, 25% to 33% in dividends. The type of investment vehicles that generates interest are Daily interest savings, GIC, Bonds.