What type of mutual fund primarily invests in government and corporate bonds?

A fixed-income fund primarily invests in government and corporate bonds, making it a suitable choice for individuals looking for investments that provide regular income through interest payments. These funds typically aim to preserve capital and provide stability, which is why they focus on bonds, as these securities are generally considered less risky compared to stocks.

In contrast, an equity fund focuses on purchasing stocks and shares to drive capital growth, which inherently carries higher risk and potential reward. A balanced fund invests in a mix of both stocks and bonds to achieve a moderate risk and return profile, while an index fund aims to replicate the performance of a specific market index through a diversified portfolio of stocks. This clear distinction highlights why a fixed-income fund is specifically designed for bond investments, making it the correct answer for the question regarding mutual funds that invest in government and corporate bonds.