Get Ultra Low-Risk Growth With A Stable Value Fund
March 12, 2021 11:46 AM Carla Fried - Forbes Advisor
Posted:
Updated:
March 15, 2021 6:09 AM
Playing it safe is tricky for retirement investors. Buy a money market mutual fund and you won’t lose any money. But you also won’t earn much, either and you may even forfeit purchasing power over time. Since the end of the Great Recession, money market fund yields have been stuck well below the rate of inflation. You could try bonds, of course. Bonds funds offer higher yields, yes, but then you get more risk, too.
What’s a risk-averse retirement investor to do? Perhaps turn to stable value funds, a potential goldilocks solution that may already be available in your workplace retirement plan.
Synopsis
After a long rough phase of underperformance, ICICI Prudential Value Discovery Fund is back with a bang. The scheme has being criticised by many investors and advisors for a stretched low-return phase.
After a long rough phase of underperformance, ICICI Prudential Value Discovery Fund is back with a bang. The scheme has being criticised by many investors and advisors for a stretched low-return phase. However, many investors who stayed invested in the scheme during the bad phase are reaping the benefits now. The scheme has offered 34.09% returns in the last one year compared to -3.32% returns in 2018 and 1.21% returns in 2019. The scheme made a
The Neuberger Berman Large Cap Value Fund Institutional Class (ticker: NBPIX) (the "Fund") generated a 14.67% return for the 2020 calendar year, ranking in the fourth percentile of Morningstar, Inc.'s Large Value Category (out of 1,200 large value funds), and outperforming the Russell 1000 Value Index return of 2.80% by 1,187 basis points. The Fund's returns were 12.19% for the three years, 15.56% for five years, and 10.68% for 10 years ended December 31, 2020 placing it in the 1st (out of 1,128 large value funds), 1st (out of 998 large value funds), and 26th (out of 716 large value funds) Morningstar, Inc. percentiles respectively. The Fund's Institutional Class generated a 28.66% return for the fourth quarter of 2020, ranking in the second percentile of Morningstar, Inc.'s Large Value Category (out of 1,215 large value funds).
Synopsis
We all want our picks to be the winners. We also want to play it safe. So, what do we do? We end up trying to find the past winners and want to hug them.
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Often the beginning of the year is the time when investors look to pick the winners for the next year. That approach, obviously is fraught with danger – considering a year is too short a time period in the investing world. So, if you are looking to find a sure-shot winning investment idea for 2021, you can stop reading further.
Having said that, let me share one of the better ways to choose your investments. It might not play out within a year, but like most new year resolutions, if you stick to it long enough, it would pay off.
beware of, and lots of people have this in their 401(k) are targeted date retirement funds. what they do basically is move you more into bonds as you get closer to your retirement. now is just not the time. but that was the policy for years and years as you got closer to retirement age, which is 60, 65, good luck in this economy. you would want to be in bonds because you didn t want to take risks. do you think that will change by the time boomers retire? well, yes, it very possibility could. but with the fed easing off its easy money policy, interest rates will go up. it doesn t mean a 30-year bond bear market. and you can be in bonds. but take a look at some of the bond funds that i mentioned instead of the total return 30 year kind of bond funds. stable value funds. yes. worth considering at this point. absolutely. thanks, brenda. thank you. making money with your money. that s what brenda does for us. thank you. i like that, making money with your money. coming u