Participants in 401(k) plans favored conservative investments in their June trading, according to the latest Alight Solutions 401(k) index issued Wednesday.
The leading asset allocation categories for trading inflows were bond funds (62%), stable value funds (26%) and money market funds (10%). The biggest trading outflow categories were large-cap domestic equity funds (45%), target-date funds (24%) and company stock (13%).
However, target-date funds grabbed the biggest piece of contributions (46% of allocations). Large-cap domestic equity (21%) and developed international equity (7%) were the next largest source of contributions.
Despite participants' conservative trading preferences, Alight reported that the average asset allocation to equities rose to 65.6% in June from 65.4% in May. New contributions to equities increased to 67.5% in June vs. 65.4% in May.