Target-Date Fund

Target-Date Fund
A mutual fund in the hybrid category that automatically resets the asset mix (stocks, bonds, cash equivalents) in its portfolio according to a selected time frame that is appropriate for a particular investor. A target-date fund is similar to a life-cycle fund except that a target-date fund is structured to address some date in the future, such as retirement.

These funds have become popular with 401(k) plan investors. While proponents cite the convenience to investors of putting their investing activities on autopilot in one fund, critics are wary of these funds' one-size-fits-all approach.


Investment dictionary. . 2012.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Target date fund — A Target date fund also known as a lifecycle or age based fund is a collective investment scheme, usually a mutual fund, designed to provide a simple investment solution through a portfolio whose asset mix becomes more conservative as the target… …   Wikipedia

  • Target Field — Location 1 Twins Way (3rd Ave. N, between 5th St. N and 7th St. N) Minneapolis, Minnesota …   Wikipedia

  • Mutual fund — This article is about mutual funds in the United States. For other forms of mutual investment, see Collective investment scheme. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors… …   Wikipedia

  • Balanced Fund — A fund that combines a stock component, a bond component and, sometimes, a money market component, in a single portfolio. Generally, these hybrid funds stick to a relatively fixed mix of stocks and bonds that reflects either a moderate (higher… …   Investment dictionary

  • Asset Allocation Fund — A mutual fund that provides investors with a portfolio of a fixed or variable mix of the three main asset classes stocks, bonds and cash equivalents in a variety of securities. Some asset allocation funds maintain a specific proportion of asset… …   Investment dictionary

  • Hybrid Fund — A category of mutual fund that is characterized by portfolio that is made up of a mix of stocks and bonds, which can vary proportionally over time or remain fixed. Morningstar separates hybrid funds into domestic hybrid and international hybrid… …   Investment dictionary

  • Index fund — An index fund or index tracker is a collective investment scheme (usually a mutual fund or exchange traded fund) that aims to replicate the movements of an index of a specific financial market, or a set of rules of ownership that are held… …   Wikipedia

  • Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… …   Wikipedia

  • United Nations Children's Fund — Infobox UN name = image size = 250px caption = UNICEF Logo type = Fund acronyms = UNICEF head = Ann Veneman status = Active established = 1946 website = http://www.unicef.org parent = ECOSOC commons = United Nations footnotes = is called… …   Wikipedia

  • Nuclear Liabilities Fund — The Nuclear Liabilities Fund (formerly the Nuclear Generation Decommissioning Fund) is a fund of the UK Government to provide arrangements for funding certain long term costs for the decommissioning of eight nuclear power stations formerly owned… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”