How can a 401k investment menu be designed to cater to different risk tolerances among participants?

1 min. readlast update: 03.11.2025

Design your menu to accommodate varying risk preferences through a spectrum of investment options. For conservative investors, include stable value funds, short-term bond funds, and balanced options.

Moderate-risk investors benefit from blend funds, core fixed income, and blue-chip equity options. For aggressive investors, provide growth-oriented domestic equity, international stocks, and possibly sector-specific funds.

Consider including a risk assessment tool to help participants identify their risk tolerance and match it to appropriate investment selections.

 

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