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May 11, 2017 0 Posted in Financial

What do I need to know about stable value funds?


The investment objective of stable value funds is to provide capital preservation and predictable steady, returns. During 2008, stable value funds were one of the few 401(k) investments that produced a positive return. Stable value fund returns generally ranged between 3 to 5 percent for 2008. Stable value funds are comprised of a diversified portfolio of fixed income securities that are insulated from interest rate movements by contracts from banks and insurance companies. The protection from interest rate volatility is universal and unique to stable value funds.

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May 08, 2017 1 Posted in Financial

Are stable value funds risk free?


No. All investments have risks associated with them. Stable value funds are considered to be one of the lowest risk investments offered in 401(k) plans. They have return stability similar to a money market fund but generate higher returns. Because of their low risk and stable, consistent returns, they can help diversify 401(k) asset allocation. As an investor, you should evaluate your risk tolerance to make sure you are comfortable with the level of risk in your stable value fund and other investments.

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May 06, 2017 1 Posted in Financial

What is Stable Value Fund?


Stable value funds are capital preservation investment options available in 401(k) plans and other types of savings plans. They are invested in a high quality, diversified fixed income portfolio that are protected against interest rate volatility by contracts from banks and insurance companies. Stable value funds are designed to preserve capital while providing steady, positive returns. Stable value funds are considered a conservative and low risk investment compared to other investments offered in 401(k) plans.

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