Target Date Fund
Target Date Funds (TDFs) offer a simplified approach to retirement investing by automatically adjusting their asset allocation to become more conservative as a specific target retirement date nears.
Tumisang Bogwasi
Tumisang Bogwasi
What is Target Date Fund?
Target Date Funds (TDFs) are mutual funds designed to automatically adjust their asset allocation over time, becoming more conservative as an investor approaches a specific retirement date. These funds are a popular choice for retirement savings plans like 401(k)s and IRAs due to their hands-off approach to portfolio management. The primary objective is to provide a diversified investment that aligns with the investor’s risk tolerance, which typically decreases with age.
The strategic shift in asset allocation within a TDF is based on a predetermined schedule, often referred to as a
