stable value fund - Investment & Finance Definition
A mutual fund whose holdings include high-quality bonds, as well as interest-bearing contracts bought from banks and insurance companies. Those contracts have a guarantee, which is called a wrapper, that the principal and interest payments will remain steady. The wrapper guarantees that the net asset value will remain stable for a certain amount of time, regardless of market conditions. Stable value funds often are offered as an option on 401(k) retirement plans.