Originally Posted by rsingh6675
What r Stable Value Funds---Examples?
typically these exist in 401k or 403b plans. they have a nav that goes up unlike mm funds that maintain a $1 nav. sv funds now typically pay 3-3.5%. they are composed of very short term paper and include an insurance wrapper. i have never seen the nav of mine go down it's just how fast it goes up that determines your yield/return.
The fund invests in stable value investment contracts issued by a diversified group of high-quality insurance companies, banks, and other financial institutions, and a variety of fixed income instruments including U.S. Government and agency securities, mortgage-backed securities, asset-backed securities, corporate bonds, and interest rate futures and options. The fund also maintains an allocation to a money market fund to help meet daily liquidity requirements. Unit price, yield, and return will vary.
Who may want to invest:
Someone looking for a conservative investment.
Someone who is looking for relatively stable income and seeks to preserve principal value. Someone who anticipates using a portion of their retirement savings in the next five years.