Purchasing a stable-value fund through your employer-sponsored retirement can be a good way to reduce market risk in your retirement nest-egg.

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Stable-value funds, also known as capital preservation funds or guaranteed investment contracts (GICs), are designed to provide a low-risk investment option for investors looking to reduce their exposure to market fluctuations. These funds typically invest in high-quality, short-term fixed-income securities and are backed by an insurance company or other financial institution, which provides a level of protection for the principal investment. By investing in a stable-value fund through your employer-sponsored retirement plan, you can potentially reduce market risk in your retirement portfolio while still earning a competitive rate of return.

Purchasing a Stable-Value Fund Through Your Employer-Sponsored Retirement Can Be