Money market funds

They invest mainly into short-term bonds, whose prices are not affected much by fluctuations in interest rates. Money market funds are suitable for investors who prefer to invest conservatively or for a short term.

Balanced funds

They invest into both bonds and equities, which is why they are between bond funds and equity funds in terms of risk and return. Balanced funds are suitable for investors who consider bond funds to be too conservative, but who do not want to invest all their money into higher risk equity funds.

Bond funds

They invest in corporate and government bonds, which are usually less risky than shares. Bond funds are suitable for conservative investors who wish to maintain the purchase power of their investments and also earn more than they could from money market funds.

Equity funds

They invest in shares of companies and have the highest risk level of all funds. Equity funds are suitable for investors who wish to grow their capital as much as possible and who are prepared to keep their fund units even when the markets fall.