What Is a Stable Value Fund?

By Catherine Brock – Updated Jan 1, 2025 at 12:55 PM

Key Points

Stable value funds balance higher returns with low risk, suitable for conservative 401(k) investments.
They typically outperform money markets in long-term returns but may underperform in rising rates.
Research fund history, fees, and portfolio mix of bonds to ensure alignment with your risk profile.

Balancing risk and return is the core challenge of investing. You want strong earnings, but you don't want to gamble in the process. Stable value funds offer a conservative approach for higher returns than cash without adding risk.

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Person points to graph on monitor showing volatility. — Image source: Getty Images.

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Table data source: Fidelity.
Asset	Management Fee	1-year Return	10-year Return
FASV Share Class 1	0.55%	1.40%	1.37%
FASV Share Class 2	0.80%	1.15%	1.13%
FASV Share Class 3	0.35%	1.61%	1.57%
Prime money market funds, Morningstar category average	Varies	4.14%	0.94%

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About the Author

Catherine grew up in Southern California wearing a lot of black and trying to perfect the art of sarcasm. Prior to joining The Fool as a contract writer, Catherine was climbing the corporate ladder in marketing roles and dabbling in too many side hustles. When she's not writing, she can be found riding a horse in the country or shopping online for clothes.

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@catherinejbrock

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