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Stable Value Fund

A stable value fund is a low-risk investment option typically offered in retirement plans, such as 401(k)s. These funds invest in high-quality, low-volatility assets like government bonds, guaranteed investment contracts (GICs), and other fixed-income securities. Stable value funds aim to preserve capital while providing steady returns higher than those of money market funds. They are particularly attractive to conservative investors seeking consistent returns with minimal risk.

Example

An employee saving for retirement invests in a stable value fund through their 401(k) to protect their principal while earning a stable return.

Key points

• Low-risk investment focused on capital preservation and steady returns.

• Common in retirement plans like 401(k)s.

• Invests in assets like government bonds and GICs.

Quick Answers to Curious Questions

They offer capital preservation and consistent returns with minimal risk, making them ideal for conservative investment strategies.

Stable value funds typically invest in government bonds, GICs, and other high-quality fixed-income securities.

Stable value funds usually offer higher returns than money market funds while maintaining a similar low level of risk.

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