IN ITS Fund Focus2008 report, NCB stockbrokers selected its top picks for the year ahead from the array of investment funds on the Irish market, writes Caroline Madden.

The funds were selected on the basis that they are expected to outperform the average in their sector and range from low risk, for investors who require security, to medium and high risk for those seeking greater returns.

The lowest-risk fund selected by NCB is Irish Life's diversified assets fund, which aims to deliver three-quarters of the return of a traditional balanced managed fund (the default savings fund for long-term Irish investors) but with half the risk, as a result of greater diversification across asset classes such as property, bonds and commodities.

The slightly riskier Hibernian European commercial property fund also made the cut. It invests in high-quality assets across the three main commercial property sectors - office, retail and warehouse. Investors can avail of a geared or non-geared version.

Lying midway across the risk spectrum is Standard Life's global real estate investment trust (Reit).

A Reit is a quoted company that owns and manages predominantly income-producing property, either commercial or residential.

"Global Reit funds provide an excellent way to gain exposure to a wide range of property sectors and locations," NCB says.

Among the other funds selected is Friends First's magnet explorer, suited to investors seeking exposure to emerging markets. It has access to four individually managed funds that have a proven track record in India, Russia, Asia and Latin America.

One of the highest-risk funds is Fidelity's emerging Europe, Middle East and Africa fund.

"While this fund will not be for everyone, we believe that over the long term, it will provide a good return, albeit with some volatility along the way," says NCB.