Deciding between different investment options can be a daunting, time-consuming task. Instead of choosing investments and hoping they work out, start reviewing your investment philosophy.

If you don’t have one, the below concepts can help you get started. Having a plan is important, but executing your plan wisely is even better.

1. Portfolio diversification – Spread contributions across different types of investments to reduce overall risk. If all of your assets are in one fund, your balance will be susceptible to market fluctuations. Consider investing in multiple funds or our Target Date Fund (TDF), which has exposure to several investment options and is allocated based on your target retirement year.
2. Time Horizon – Does your age and risk tolerance coincide? Younger members may be able to afford to take on more market risk because they have more working years ahead of them. Members nearing retirement may want to reduce investment risk to plan for the forthcoming need to access their account(s).
3. Risk Tolerance – Does the thought of your account balance going down make you nauseated? You may be more risk-averse and could be more comfortable with investments that don’t fluctuate as much. Do you view ups and downs in your portfolio as a normal part of investing? You may have a higher tolerance for risk and be comfortable with a more aggressive investment lineup. No matter your comfort level, you can choose what feels right for you and your future.

INPRS’s TDFs adjust with you as you work. Starting more aggressively while you have many years ahead of you and eventually becoming more conservative as you approach retirement eligibility. In addition to TDFs, you can select from the following options:

• Large Cap Equity Index Fund
• Small/Mid Cap Equity Fund
• International Equity Fund
• Fixed Income Fund
• Inflation Linked Fixed Income Fund
• Stable Value Fund
• Money Market Fund

For more information on retirement benefits plans and investment options, check out Investing 101 online. View our investment fact sheets and take our Risk Tolerance Quiz for help determining which investment fund works best for your situation.

For questions regarding your defined contribution (DC) account or the various investment funds, please contact our Member Advocate Team at (844) GO-INPRS or (844-464-6777) Monday through Friday from 8 a.m. to 8 p.m. EST, or feel free to email us at questions@inprs.in.gov.