Which type of UITF primarily invests in fixed income securities?

The correct choice is the type of UITF known as a Fixed Income Fund, which specifically targets investments in fixed income securities. These securities generally include bonds, government treasury bills, and other debt instruments that provide regular income through interest payments. Fixed Income Funds are designed to offer investors a relatively stable return, focusing on capital preservation and consistent income generation rather than capital appreciation through stock or equity investments.

In contrast, while an Equity Fund primarily invests in stocks, aiming for growth and higher returns over time, a Money Market Fund invests in short-term, highly liquid financial instruments, which generally have lower risk and yield lower returns compared to fixed income investments. A Balanced Fund invests in a combination of both equities and fixed income securities but does not focus exclusively on one type. Therefore, the emphasis on fixed income securities makes the Fixed Income Fund the most appropriate answer for questions specifically about UITFs centered on those types of investments.