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Subject:  Re: Retirement Investing Date:  3/3/2000  8:02 PM
Author:  reidmp Number:  19779 of 88772

!Does anyone have information about funds that
!guarantee to protect principal? Maybe Aetna and
!Putnam? If so, I'd like a little more information.

Even a money-market fund won't *guarantee* to protect the principle. There are funds where loss of principle is less likely, like the money-market funds and maybe funds that only put money in very high-grade bonds. The returns stink (only slightly better than inflation) so people generally only use them as a short-term holding area before needing to move money or spend cash on something (a house, or college tuition, etc.). You'll find lots of funds that in their prospectus will use phrases like "preservation of principle", but don't construe that as a guarantee.

If you are looking for good investment returns without risking the principle you won't find it. The whole idea of investment returns are that you are being rewarded for taking on some risk.

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