Investment options of KARAT 401(K) PLAN
Total Available Funds: 38
| Investment Description |
|---|
| American Funds Growth Fnd R6 Registered Investment Company |
| DFA Global Real Est Sec Pt Ins Registered Investment Company |
| DFA Intrm-Tm Extnd Qual Pt Ins Registered Investment Company |
| DFA Large Cap Intl Port Ins Registered Investment Company |
| DFA Wld exUS Gov Fxd Inc P Ins Registered Investment Company |
| Vangrd 500 Index Fund Adm Registered Investment Company |
| Vangrd Comm Srv Ind Fnd Adm Registered Investment Company |
| Vangrd Dev Mkts Index Fd Adm Registered Investment Company |
| Vangrd Em Mkts Stk Ind Fd Adm Registered Investment Company |
| Vangrd Energy Index Fund Adm Registered Investment Company |
| Vangrd Equity Income Fund Adm Registered Investment Company |
| Vangrd Ext Mkt Index Fnd Adm Registered Investment Company |
| Vangrd Financials Index Fd Adm Registered Investment Company |
| Vangrd Growth Index Fund Adm Registered Investment Company |
| Vangrd Industrials Indx Fd Adm Registered Investment Company |
| Vangrd Infl-Prt Secs Fund Adm Registered Investment Company |
| Vangrd Info Tech Indx Fd Adm Registered Investment Company |
| Vangrd Mid-Cap Index Fund Adm Registered Investment Company |
| Vangrd Mid-Cap Vl Indx Fnd Adm Registered Investment Company |
| Vangrd ShtTrmInfProtSecIndAdm Registered Investment Company |
| Vangrd Sm-Cap Vl Index Fnd Adm Registered Investment Company |
| Vangrd St-Trm Inv-Grd Fnd Adm Registered Investment Company |
| Vangrd Strat SmCp Eqty Fd Inv Registered Investment Company |
| Vangrd Tot Bd Mkt Ind Fd Adm Registered Investment Company |
| Vangrd Tot Int Bnd In F Adm Registered Investment Company |
| Vangrd Tot Int Stk In F Adm Registered Investment Company |
| Vangrd Tot St Mkt Indx Fd Adm Registered Investment Company |
| Vangrd Tx-Mngd Sm Cp Fd Adm Registered Investment Company |
| Vangrd Utilities Ind Fnd Adm Registered Investment Company |
| Vangrd Value Index Fund Adm Registered Investment Company |
| Vanguard LT Treas Indx-Adm Registered Investment Company |
| Voya Gv Mny Mkt F A (Hld Acct) Registered Investment Company |
| Voya Index Solution 2035 P Z Registered Investment Company |
| Voya Index Solution 2040 P Z Registered Investment Company |
| Voya Index Solution 2045 P Z Registered Investment Company |
| Voya Index Solution 2050 P Z Registered Investment Company |
| Voya Index Solution 2055 P Z Registered Investment Company |
| Voya Index Solution 2065 P Z Registered Investment Company |
Investment model portfolios
We provide two types of investment model portfolios for KARAT 401(K) PLAN participants. You can customize and follow a model portfolio in your plan account.
Types of portfolio strategies
- Strategic asset allocation portfolio: It invests in a diversified portfolio of multiple assets, buy-and-hold without frequently changing the asset allocation weights.
- Suitable: For long-term (more than 15 years, preferably more than 20 years), want to be tax efficient and can withstand interim drawdown or loss as high as 50% or more.
- Pros:
- Less error-prone
- Infrequent rebalancing or transactions
- Tax efficient for taxable brokerage investments
- Cons:
- Interim loss or drawdown can be substantial
- Possible low returns for an extended period, such as 10 years or longer
- Tactical asset allocation portfolio: it invests in a diversified portfolio of multiple assets, dynamically adjust stock and bond allocations to minimize losses during market stress.
- Suitable: For long-term (more than 10 years or preferably longer) capital. Investors are willing to rebalance as frequent as monthly.
- Pros:
- Reduce large interim loss or drawdown
- Less sensitive to investment entry point
- Likely to improve returns
- Cons
- Demand more frequent rebalancing or transactions
- Less tax efficient — more suitable in a tax-deferred account such as 401(k) or IRA
- Can experience a period of lower returns compared to a broad-based strategic allocation or a buy-and-hold benchmark, especially in some bull markets
These portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring it remains in line with its target allocation.
Let us know (Email us) if you need help to create a custom model portfolio for your plan.
Retirement Plan (401(k)) Info for KARAT 401(K) PLAN