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There are many types of funds for investors to choose from, to the point that many people feel overwhelmed and simply do not know where to start. Experts widely recommend the so-called portfolio funds, because these mutual funds let you choose from individual funds with a range of asset allocations. Investors can choose a portfolio which can be a high risk or virtually risk-free one.

In general, funds require that you make a minimum investment, up to a few thousand dollars. This enables investors to pick a diversified portfolio, which is not as expensive as trying to maintain one by yourself. In addition, investors do not have to keep track of a number of holdings, which is a responsibility of the fund manager. Depending on your requirements, there are different kinds of funds to invest in, including growth funds, value funds, equity income, growth-and-income, balanced funds, specialty funds and a variety of others. Specialty funds, for instance, specialize in investing in certain sectors, be it technology, healthcare, or another sector. There is nothing wrong with this type of investment strategy, but remember that even top-performing sectors may crush the following year

If you are a risk-adverse investor, you can look at the ultra safe portfolio. This portfolio is a good option for investors who seek returns but do not want to take big risks.

The ultra-safe portfolio for this year contains the following. The PH&N Canadian Money Market mutual fund has marked +0.33 percent in six-month returns and a value of $1,401.58. In comparison, the PH&N fund offers a six-month return of +1.49 percent with a value of $2,835.56. Other funds have also performed well, including Canadian Short Term Bond Index (CIBC) with $2,829.41 and +1.27 percent and National Bank Mortgage with a value of $4,232.39 and +0.99 percent. For the rest, iShares DEX All Corporate Bond Index has a return of +1.31 percent and value of $4,245.80 while RBC Monthly Income has +2.78 percent and $4,307.40, respectively .

The total value of the yield from investing in these products was $28,378.11 toward mid-2011. This figure is up from $27,939.32 in 2010 and $25,000.00 in 2009. The conclusion is that this portfolio protects your assets and generates a return that is satisfactory, if not exactly mind-blowing.

Another safe, albeit slightly riskier option is the non-registered defensive portfolio. This option also entails a little bit more cash flow. This option is recommended for non-registered accounts, the most important aspects there being income and safety. This investment aims for an average annual return of 4 percent to 6 percent. PH&N Canadian Money Market, for example, marks a six-month return of +0.33 percent, which is worth $1,508.91. The figures for iShares DEX Short Term Bond Index Fund are +0.83 percent and $4,549.28, respectively. The total value of the yield from investing in these products was $31,032 toward mid-2011. This is up from $25,000.00 in 2009 and $30,000.90 in 2010.

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