how to invest in a stable bond fund
a stable value fund is often an investment option in qualified retirement plans such as 401 k plans a stable value fund may also be an appealing alternative to lower yielding vehicles such as money market funds for the portion of an investor s portfolio that is used to counter market volatility stable value funds can provide the essential elements of balance and stability in a portfolio weighted in growth investments however there is a danger if a portfolio is weighted too heavily in lower yielding investments such as stable value funds the investor risks being squeezed by inflation down the road a retirement income that seems sufficient initially can gradually become inadequate as the years pass and inflation mounts most professional financial advisors recommend a portfolio that is a mix of safe but low yielding investments and risky but potentially rewarding investments with a gradual reweighting towards safety as the investor approaches retirement age investors also should check the expenses associated with stable value funds historically their fees have been in the low range compared to most mutual funds however insurance companies have been increasing their fees due to the perceived risks of a more volatile market 