Which type of fund specializes in the fixed-income sector?

Bond funds specialize in the fixed-income sector, primarily investing in various types of bonds to generate consistent income for their investors. These funds focus on a range of fixed-income securities, including government bonds, municipal bonds, and corporate bonds. The primary goal of bond funds is to provide regular interest income and preserve capital, making them an essential component of a diversified investment portfolio.

In contrast, equity funds invest in stocks for capital appreciation and potential dividends, money market funds primarily invest in short-term debt instruments, and growth funds focus on stocks expected to grow at an above-average rate. These other types of funds serve different investment objectives and do not concentrate on fixed-income securities like bond funds do.