Recommend me some mutual funds

[-relk-]

I will be putting another $5k into my TFSA this year and am looking to invest it into some mutual funds and/or other longish term investments. I won't be using this money for at least 2 years (I hope) so I am just looking to get a good return on it while it is in my TFSA. I know it is not a whole lot but its all I got!

I am a complete newbie when it comes to investing so if you have any recommendations on mutual funds or what else to look at any help is appreciated! It would be fantastic if someone could recommend me a site to look at to start some of my research. I did google a little bit, but found myself way over my head and helpless when looking at some of the results so I am hoping some beyonders can narrow down what I should be looking for!

I am not looking to throw all $5k into one pot, as I would like to invest in a range of whatever works best for my situation. Thanks for any help!

[ExtraSlow]

First thing you need to do is to find what what an MER is make sure you find a fund with a "low" MER.
Myself, I like to keep under 1%, which means mostly index funds.

[Feruk]

I'd say buy an ETF that follows the index. Here are two sites that give you a wide variety of ETFs:
IShares: http://ca.ishares.com/home.htm
Horizon: http://www.horizonsetfs.com/pub/en/Default.aspx

If you want diversification AND liquidity, your best bet is to go with an ETF over a mutual fund. You don't wanna be buying and selling a bunch of individual companies with only $5K as it'll cost you somewhere in the range of $55 to execute combo of buy/sell for each individual investment. A diversified ETF will give you protection from any given sector while not costing too much. What ExtraSlow said above for mutual funds applies to ETFs as well (low MER).

[ExtraSlow]

Yeah, ETF's are my favourite way to buy mutual funds.

As a lot of beyonders have found out, stay away from any leveraged ETF (2x, 3x etc) unless you are a seasoned investor with money you can afford to lose.

Normal Index ETF's are not a problem, and are suitable for even novice investors.

I reccomend reading a few investing books. I like armchair millionaire and anything from Gordon Pape.