TSP funds boast strong gains in October

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.