There is some good news for people who invest in TSP as thrift savings plans have ended 2016 on a positive note. The funds not only posted positive monthly numbers but it has also succeeded in attaining high yearly numbers. Though the performance of the funds took a hard hit due to developments like Brexit, but the performance of these funds is somewhat stable now.
Figures Confirm that Thrift Savings Plans Have Ended 2016 on a Positive Note
The figures attained by TSP funds in December confirm that thrift savings plans have ended 2016 on a positive note. The S fund which invests in the small-cap stocks was the top performer of 2016 as it gave a yearly return of 16.85 percent to all the investors. In the month of December, it posted 1.81 percent, down from the 7.95 percent of November. The C Fund which invests in the renowned S&P 500 Index ended the year with a double-digit growth as it was 12.01 percent. It was 1.98 percent in December, again, down from 3.71 in the month of November.
The I fund that invests in the International stock index had a positive year return of 2.10 percent. Though it had negative numbers for many months, it still performed better than the low-reward and low-risk G fund that ended the year at 1.82 percent. It is pertinent to highlight that the G fund offered the lowest yearly return as compared to all the TSP funds.
The F fund which is a fixed-income index investment fund ended 2016 on the lower side as it had just 2.91 percent return. But it succeeded in posting a higher return of 0.16 percent in December in December as compared to November (-2.35 percent). The L Income fund ended the year at 3.58 percent while all other lifecycle funds posted higher results. The L 2050 fund succeeded in posting the highest return of the bunch at 8.65 percent.
It can be seen clearly that though the December returns are not too high than the November’s returns, they are far better than the figures in October when only G fund succeeded in posting a positive return.
Though the thrift savings plans have ended 2016 on a positive note, many of the participants had not expected it especially during the time of the Brexit referendum as at that time the investors withdrew $2.1 billion from I, S and C funds that are stock-indexed.