A first home savings account (FHSA) must hold only qualified investments similar to those allowed in RRSPs and TFSAs, including cash, mutual funds, listed securities, GICs, and certain bonds. Foreign funds can be contributed but are converted to Canadian dollars. In-kind contributions of qualified property are allowed but may trigger capital gains tax. Non-qualified or prohibited investments incur a 50% tax, with possible refunds if disposed of timely. A 100% tax applies to advantages received related to the FHSA. Issuers must report non-qualified investments to the holder and tax authorities.