Meet Your Clients' Needs With Stable Value Funds

April 30, 2021
A man dining outdoors

Stable value funds are a great option for people focused on saving for retirement. You’re probably familiar with these benefits:

  • Low risk
  • Preservation of principal and accumulated interest
  • Liquidity

A stable value fund differs from a money market fund in a significant way — it includes a guaranteed rate of return on the investment. And, historically, stable value funds have had higher returns than money market funds.

We surveyed plan participants and here’s what they said after looking at the performance history of stable value funds:

  • About half said they’d choose a stable value fund over a money market fund. Only 35% said they would choose a money market fund over a stable value fund.
  • 55% said a guaranteed return on investment was the most important feature of a cash equivalent investment.

More Worth Knowing About Stable Value Funds

Want to sharpen your knowledge about this capital preservation option? Grab our guide to the six key features of stable value funds. It includes a comparison of crediting rates, and explains wrap providers and termination provisions.

Explore how this option can help plan participants prepare for retirement.