TSP funds boast strong gains in October

October was another sound month for federal employee Thrift Savings Plan investments, with all of the funds earning increases.

None of the five basic funds offered as part of the $231 billion 401(k)-style retirement savings plan lost ground last month. The international (I) fund continued to be the star earner, with October gains of 4.49 percent and a 12-month total of 25.70 percent.

The stocks of small- and mid-sized American companies that make up the S Fund gained 2.83 percent in October, for a 16.35 percent 12-month return.

The common stocks (C) fund, which tracks the Standard & Poor's 500 Index of stocks in the largest domestic companies, grew 1.58 percent, after making strong gains in August and September but losing ground in July. The C Fund has now increased 14.62 percent over the past year.

The F Fund, which is invested in fixed-income bonds, gained 0.86 percent last month for a 12-month return of 5.42 percent.

The TSP's safest bet -- the G Fund made up of short-term Treasury securities -- lagged behind the other funds, posting a 0.41 percent return in October and a 4.91 percent gain for the past 12 months.

The plan's life-cycle options, which automatically adjust to a more conservative mix of investments as participants near retirement, gained ground too. Those designed for younger employees earned the most, because they invested more heavily in the I, C and S funds.

The L 2040 fund, for those anticipating retirement around 2040, grew 2.37 percent last month. The L 2030 Fund gained 2.09 percent; the L 2020 rose 1.84 percent; the L 2010 increased 1.29 percent; and the L Income, for employees retiring in the near future, gained 0.82 percent.

The L funds with riskier allocations also earned more over 12 months. L 2040 gained 16.11 percent, L 2030 grew 14.68 percent, L 2020 gained 13.28 percent, L 2010 earned 10.27 percent and L Income made 7.47 percent.