These funds deliver predictable results for retirement savers.
From Kiplinger’s Personal Finance:
When the financial crisis ravaged the stock market and many parts of the bond market, stable-value funds stood out with their combination of modest, positive returns and their, well, stability. As a result, retirement savers clamored for these steadfast funds and the security they offer. The percentage of assets invested in stable-value funds in large-company 401(k) plans that offer a stable-value option rose from 20% in November 2007 to 36% in March 2009, according to Hewitt Associates, a benefits-consulting firm. Although the total amount invested in stable-value funds has fallen as stocks have recovered, such funds retain more than $642 billion in assets, which makes them the largest category of fixed-income investment in 401(k) plans.
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October 23rd, 2009 Category
Mutual Funds, Retirement