Following are the different investment opportunities associated with 401k plan.
Aggressive Growth Funds
Aggressive Growth Funds are investments that have very large and fast growth potential. However, as the potential for losses is also high, they are also high risk. Start-up companies and businesses in high-risk industries are the examples of such funds.
Balanced Funds
Otherwise known as Life Style Funds or Asset Allocation Funds, these funds combine both stocks and bonds. With potentially lower risk, they allow for diversification.
Bonds Funds
With a promise to repay at a set interest rate after a time limit has passed, bonds represent loans to Federal or local governments or to a corporation.
Growth and Income Funds
Such Funds invest in companies with strong growth potential that also have a constant record of paying dividends (income).
Growth Funds
Growth funds signify investing in relatively stable and reputable companies, which may or may not pay dividends. Finding a company with a strong potential for growth and investing in it is the goal of growth funds.
International or Global Equity Funds
Outside of the United States, international Funds invest in stocks. While in both foreign and U.S. companies, the Global Equity Funds invest.
Money Market Funds
Money market funds are conventional, low-risk commercial investments for example U.S. Treasury Bonds and Certificates of Deposit (CD's).
Mutual Funds
Mutual funds, similar to a limited liability partnership, are a way for investors to pool funds to reduce, but not completely get rid of risk.
Stable Value Funds
These funds sometimes referred to as the fixed fund or guaranteed fund are typically backed by contracts issued by insurance companies. In general, this option is considered low risk normally sought for slow, consistent growth over a period of time.
Stock Index Funds
Funds attempt to reflect the functioning of the stock market indexes, such as the SP 500.
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