American Skandia's GRO Seen Appealing to the Risk Averse.

Responding to "the value people place on loss," this optional benefit is designed to help investors pursue growth-and preserve their principal. It's aimed at the average middle-class consumer.

The plummeting Nasdaq has been good news for firms that understand how to exploit fear. One such firm is American Skandia, which hopes to capitalize on investors' worries about market volatility with the Guaranteed Return Option (GRO), available on seven of its variable annuities.

The optional benefit, introduced in June in 40 states, allows VA investors the ability to pursue growth while their annuity's principal is guaranteed. Expected to appeal to investors' natural …