TSP Posts Gains as New Funds Come OnlineawsDONOTREMOVE
The stock market gave a warm welcome to the new lifecycle funds, now available in five-year increments.
The 401(k)-style retirement savings program launched by the federal government has seen every portfolio end the month of July in red, with funds being slow to recover from the unpredictable volatility that had been experienced earlier this year.
The recent gains have been led by the S Fund from Thrift Savings Fund, which gained over 5.71% in the last month alone. However, the fund is still in the red by -0.47% for 2020. The C fund has also performed well with a growth of 5.64% in July. The C Fund has experienced an overall growth rate of 2.31% in 2020.
On the other hand, the fixed income fund has increased by 1.49% during the month of July, taking its total gain for the year to 7.66%. The I Fund’s international stocks have also risen by 2.33% though it’s still 9.01% down from the start of the year. On the other hand, the G fund has gained around 0.06% in the last month, bringing its overall gains for 2020 to 0.65%.
Lifecycle (L) funds have been on the upswing as well. These funds shift investment portfolios into other stable products as participants approach their retirement age. The L Income Fund saw a growth of 1.11% in July with the L 2030, L 2040, and L2050 funds increasing by 2.82%, 3.35%, and 3.80% respectively.
However, their overall growth for the year remains in the negative with L 2030, L 2040, and L 2050 seeing a decline of -0.06%, -0.41%, and -0.78% in 2020. L Income Fund is up 0.87% since January.
On the other hand, the newer L Funds, available in 5-year increments, have registered positive growth in the month of July. The L 2025, L 2035, L2045, L 2055, L2060, and L 2065 experiencing an increase of 2.19%, 2.86%, 3.32%, 4.13%, 4.13%, and 4.13% respectively.