<human>:  Can you explain the difference between types of mutual funds?
<bot>: The primary difference between types of mutual funds is their investment objective, which is linked to the types of assets they invest in. For example, a money market fund is typically a mutual fund that invests in short-term debt instruments, while equity funds typically invest in stocks and other equity securities. Bond funds invest in fixed income securities, such as government and corporate bonds. Balanced funds invest in a mix of stocks and bonds, while index funds track the components of a specific market index such as the S&P 500.