When it comes to investing, people have different levels of risk tolerance and experience. There are some that have limited knowledge in actively developing an investment portfolio and there are those who prefer to select their own mix of investments.
Offering a simple approach to investing, the Plan’s investment lineup is organized into choices designed to match your level of interest in investing, making investing easier for everyone.
Your choice, simplified.
||The Investment Approach
Target Retirement Date Funds – A diversified portfolio in a single fund.
|You select the fund, CalPERS manages the asset allocation of the fund.
This approach is convenient if you don’t have the desire, time or experience to actively select your asset allocation and manage it over time.
||A series of target retirement date funds offer a diversified portfolio in one fund. Each fund invests in a well-diversified portfolio of a mix of index funds that is automatically rebalanced to a less aggressive mix of investments to become more conservative as it approaches its target date.
Core Funds – A carefully selected list of passively managed investment options.
|You select your funds and actively design and manage your asset allocation over time. If you like to design and actively manage your own asset allocation based on your individual circumstances, you can choose from a carefully selected list of core investment fund options.
||CalPERS has selected a set of six index funds in different asset classes (stocks, bonds, and cash equivalents) so you can diversify your portfolio based on your personal situation.
Rounding out our investment line-up is a Self-Managed Account option that provides you greater fund selection, name brand mutual fund access, and FDIC-insured investment products. The FDIC-insured investment products consist of traditional CDs from a variety of issuers. The Self-Managed Account, if your employer offers this as an option, gives you unparalleled selection to build your own customized investment portfolio by selecting from nearly 4,000 mutual funds in 300 fund families.
In making your investment selection, you can choose to invest your contributions, in 1% increments adding up to 100%, in any combination of the following:
Plus a Self-Managed Account
You may change your fund elections at any time by calling the CalPERS Information Line at 1-800-260-0659.