State Farm® Money Market and Bond Funds Can Help Diversify Your Portfolio

While offering the potential for relatively higher returns, equities typically are also relatively more volatile. On their own, money market and bond funds can represent a less aggressive investment option than a stock fund. In addition, as part of a portfolio that includes equities, money market and bond funds can broaden your asset class exposure while helping to lessen the relative volatility of stocks.

Money market and bond funds are typically considered low-to-moderate risk investments. Before you begin investing, you should understand your level of risk tolerance. The following investor profiles can help you determine which kind of investor you are, and help you choose between the different types of money market and bond funds.


  • You're willing to accept potentially lower returns on your investments to avoid potential losses.
  • You become uncomfortable when your account balance shifts up and down and feel that slow and steady is more appropriate strategy for you.


  • You like the potential for higher returns but you may not stick with your investments when they start to tumble.
  • You look for a balance between higher potential returns and relatively stable investment alternatives.


  • You're willing to have your account balance shift up and down in exchange for potentially higher returns.
  • You are able to withstand the highs and lows in the market without too much concern and are willing to accept an increased potential for loss.

To help determine which fund may be best for you, see our Fund Selection Tool.

Start your investment planning with us by selecting the right funds.

Risk Disclosures

Securities issued by State Farm VP Management Corp. For more information, call 800-447-4930.

Neither State Farm® nor its agents provide tax or legal advice.

Investing involves risk, including potential for loss.

Diversification and asset allocation do not assure a profit or protect against loss.

Bonds are subject to interest rate risk and may decline in value due to an increase in interest rates.

You could lose money by investing in the Money Market Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation ("FDIC") or any other government agency. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time.


Not FDIC Insured

  • No Bank Guarantee
  • May Lose Value