A Closer Look at the Capital Preservation Funds used within Defined Contribution Plans

December 31, 2008 / by NEPC

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The typical defined contribution program offers twenty to twenty-five investment choices, if target date funds are counted individually. One or two of those choices will be a capital preservation fund, such as a money market fund or a stable value fund. These funds have a primary objective of providing current income while protecting principal. The risk/return profile can be thought of as modest return with very low risk.

Topics: Research


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