Investors Rush to Stable Value, Money Market Funds in March

The stock market fell throughout March, spurring 401(k) investors to trade at record-high levels, according to the Alight Solutions 401(k) Index. Total transfers as a percentage of the starting balance were the highest since October 2008. March had 18 above-normal days of trading activity—the most above-normal days in a month in the more than 20-year history of the 401(k) Index.

Retirement plan investors traded 0.96% of their starting balances during the month. Year to date, they have traded 1.59% of their balances.

Asset classes with the most trading inflows in March were stable value funds, which took in 64% of the inflows, valued at $1.29 billion. That was followed by money market funds (24%; $482 million) and bond funds (6%; $119 million).

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