Money market funds invest in short term debt and cash equivalent securities. Investors who have low risk tolerance, a short time horizon and who are seeking regular monthly income often use money market funds. Fixed income funds invest in bonds and other debt securities that pay income to investors on a fixed schedule. They may help generate income, preserve capital and lower portfolio volatility. There are a wide variety of types you can select from.

Equity funds invest in stocks and typically offer the potential for long-term capital growth. There is a wide selection to choose from, covering different regions and geographies, investment styles and even company size.

Diversified income funds focus on generating income by investing across a variety of income-oriented strategies, asset classes, sectors, and/or geographies.

• Sun Life Dynamic Equity Income Fund
• Sun Life Dynamic Strategic Yield Fund
• Sun Life MFS Dividend Income Fund
• Sun Life NWQ Flexible Income Fund

Balanced funds and managed portfolios contain a mix of equities, bonds, and cash, helping provide diversification within a single fund or portfolio.

If you are investing outside of a registered plan, corporate class funds offer a tax-smart option. They offer the potential for tax-deferred growth via reduced taxable distributions. If there are dividends from these funds, they will only be paid as capital gains or Canadian dividends – among the most tax-efficient forms of income.