Money market funds

Invest mainly in very short-term, low-risk instruments like Treasury bills and short-term deposits. They aim for stability and easy access to your money rather than high growth — often used as a place to park cash or build an emergency fund while earning more than a standard savings account.

Bond funds

Invest mainly in government and/or corporate bonds. They aim for steadier income than equities with more moderate risk, but their value can still fluctuate as interest rates and bond prices move.

Balanced (or "hybrid") funds

Mix equities, bonds, and sometimes money market instruments in one portfolio, aiming to balance growth potential with some stability. The exact mix depends on the fund's stated strategy.

Equity funds

Invest mainly in listed shares, aiming for higher long-term growth with correspondingly higher short-term volatility.

Matching fund type to goal

A short-term goal (under 1–2 years) is usually better suited to a money market fund; a long-term goal (5+ years) can better tolerate a bond, balanced, or equity fund's ups and downs in pursuit of higher returns.