The SI or the stable investment fund or the Government securities fund ( G Fund) is considered the most conservative choice for all the investors out there because it normally has the best returns and 2015 was no different for it.
G fund had the best returns:
Specifically, the G fund gained around 2.04 percent for the whole year while other funds that were linked to bond and stock indexes normally saw a lot of ups and downs for all the 401 (k) style program (for military and federal employees) investors.
We all are aware of the fact that the G fund is indeed the largest of the offerings made by TSP and it held around 35 percent of the 463 billion dollars that were on investment at the end of November last year; the month past which we don’t know anything.
The G fund is invested in a variety of government securities that make yield returns that are identical to those made by mid length government bonds. The reason why the losses don’t increases as the interest rates rise for it is the specific way the investments are made. The risk of enduring loss with respect to principal is considerably low.
After G fund came the C fund, which is also known as the common stock fund; it gained around 1.46 percent in 2015. The fund is responsible for tracking the S&P’s 500 index of all the large US firms, was responsible for holding around 28 percent of all the investor assets through and till the end of November.
The trends are estimated to be similar once we examine the results after the end of 2016 but if the interest rates go further up, we might have to see some deviations in the charts come the end of another fiscal year.