​Before you open a Registered Retirement Income Fund (RRIF), you must decide what investments to hold in your RRIF. You have 5 main choices.

1.   Guaranteed interest RRIF

Guaranteed Investment Certificates (GICs) and Canada Savings Bonds (CSBs) pay fixed rates of income over a set period of time that you choose. You can open this type of RRIF at most financial institutions.

It may be a good choice if you:

• have a low tolerance for risk,
• want to protect your principal,
• want a safe, steady income, and
• are willing to accept lower growth.

In general, the longer the term of the GIC, the higher the interest rate. It's worth shopping around to compare interest rates.

2.   Mutual fund RRIF

You can choose from a variety of mutual funds — ranging from conservative money market funds to more aggressive funds that invest in equities. You can open this type of RRIF at most financial institutions. It may be a good choice if you are looking for higher returns and are comfortable with more risk.

3.   Segregated fund RRIF

Segregated funds are similar to mutual funds. You open this type of RRIF at an insurance company. The key difference is that the insurance company guarantees between 75% and 100% of your original investment if you hold your investment for a certain amount of time — usually 10 years.

It may be a good choice if you:

• want to grow your savings faster than with GICs, and
• do not want to take on as much risk as with mutual funds (mutual funds do not guarantee your principal).

You'll pay higher fees for these funds than with mutual funds, to cover the cost of the insurance protection.

4.   Self-directed RRIF

You can hold many different kinds of investments in a self-directed plan. Examples: Guaranteed Investment Certificates (GICs), mutual funds, exchange-traded funds (ETFs), segregated funds, stocks and bonds. You can open this type of RRIF at an investment firm.

Choose a self-directed RRIF if you:

• want a wider range of investment choices,
• are a knowledgeable investor,
• feel comfortable making all the investment decisions yourself, and
• want to be able to change the investments you hold in your RRIF as your needs change or the markets shift.

5. Fully managed RRIF

If you have a lot of retirement savings or a complex financial situation, consider a fully managed RRIF. A professional money manager will create and manage a custom portfolio to fit your financial goals and situation. This process is known as discretionary investment management.

You'll have access to a similar range of investment options as with a self-directed RRIF. You can open this type of RRIF at many financial institutions, but there is usually a minimum amount required to qualify.