C Fund

The C-Fund is one of three stock funds in the Thrift Savings Plan (TSP). Read how it works to boost your retirement savings.

The C-Fund was one of the original 3 TSP funds that began in the late ‘80s. Officially, its inception date was January 29, 1988. Along with the “G” Fund and the “F” Fund, the “C” Fund was originally the only option in the retirement plan that included stocks of US companies. The “C” stands for “Common Stock,” and it invests in companies included in the S&P 500. In the private sector’s 401(k) plans and for individual investment accounts, similar mutual funds and exchange-traded funds (ETFs) exist that also have investment portfolios that track the 500 companies in the stock index.

One of the most historically touted aspects of the TSP is the low cost, and while it remains on the less expensive side of the spectrum, the expense ratios are not as competitive as they once were.

The Risks and Potential Growth

According to the TSP website, the C Fund contains market risk and possible inflation risk. Because the value of what a participant has invested in the C Fund is dependent on the stock prices of the S&P 500 companies, there is an inherent risk that the prices could drop and incur a loss. Or, if not a loss, the prices may not grow enough to outpace inflation, hence some inflationary risk.


The S Fund and I Fund are the other two index funds containing stocks in the TSP, both being added in May of 2001. The TSP website points out that having a diverse portfolio that includes the C Fund along with one or both of the other two stock funds (S and I) has the potential of thinning out the market risk. Adding the non-equity funds (G and F) to a TSP portfolio as well is noted as a strategy that could make a TSP participant’s investment allocation less susceptible to volatile changes in value – both positive and negative.

For help with your own TSP investments, meet with a Chartered Federal Employee Benefits Consultant (ChFEBC℠) to review your Federal Benefits.


Until Next Time,

Benefits Ben, STWS

**Written by Benjamin Derge, Financial Planner. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.

**The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees and members of the uniformed services, including the Ready Reserve. The TSP is a defined contribution plan, meaning that the retirement income you receive from your TSP account will depend on how much you (and your agency or service, if you're eligible to receive agency or service contributions) put into your account during your working years and the earnings accumulated over that time. The Federal Retirement Thrift Investment Board (FRTIB) administers the TSP.***

C Fund

The C Fund (TSP)