Which of the following is a common type of mutual fund?

The correct answer encompasses all the listed options, as each is a recognized category of mutual fund, illustrating the diversity and specialization available within mutual fund investments.

Equity funds primarily invest in stocks, aiming for capital appreciation. They tend to have higher potential for growth but also come with heightened risk due to market fluctuations.

Income funds, on the other hand, are designed to provide regular income to investors through dividends or interest payments. These funds typically invest in a mix of bonds, dividend-paying stocks, or other income-generating securities.

Bond funds focus specifically on fixed-income securities, primarily government or corporate bonds. They offer lower risk compared to equity funds and are generally used by investors seeking stability and predictable income.

By recognizing that each of these fund types plays a distinctive role in an investment strategy, it becomes clear that the answer includes all of them, reflecting the breadth of choices available to investors looking to diversify their portfolios according to their financial goals and risk tolerance.