stable value fund

Definitions (2)

1. An investment option typically offered in retirement plans by employers or IRAs that are composed of guaranteed investment contracts, fixed-income funds, or capital-preservation funds. This is a popular investment vehicle for individuals nearing retirement because of stable interest and principle payments on these contracts. The returns from a stable value fund are secure, but can be small compared to other investments. A stable value fund should not be the only investment vehicle in the portfolio of an individual who has a long time until retirement.
2. A type of mutual fund that is regulated by the Department of Labor instead of the Securities and Exchange Commission, which typically oversees mutual funds. Stable value funds are similar to bond funds, but they have insurance against principal losses. Money invested in stable value fund is combined with other cash infusion and used to purchase secure contracts from banks or insurance companies. These contracts include a guaranteed regular rate of return over the course of the contract.

Use stable value fund in a sentence

I wanted my grandpa to get a stable value fund and that made me happy because he really needed it badly.

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You need to keep a close eye on your stable value fund so that you know you always have enough for what you need.

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Following the economic downturn in 2008, broker dealers saw tremendous success using different Stable Value Funds. By offering a Stable Value Fund to nervous investors reluctant to step back into the market, they were still able to build their portfolios as well as allow investors to make some smaller gains.

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