The Untold Risk of the ‘Risk-Free’ G Fund

Choose a growth stock or growth and income mutual fund with a solid track record of 10 to 20 years. Romolo Tavani/Shutterstock

Ah, the allure of the G fund. A popular fund that is invested in treasury securities, and traditionally one of the safest investments available, the G fund is guaranteed by the federal government.

Barring the total collapse of the United States government, the government pays the interest. The “safety” and backing of Uncle Sam earmarks this fund as a very attractive option for those investing in the Thrift Savings Plan (TSP).