A target-date fund is a fund offered by an investment company that seeks to grow assets over a specified period of time for a targeted goal.
What is a target date mutual fund?
Target-date mutual funds are often selected by investors saving towards retirement but are also used by people working towards a future big expense such as a child's college tuition. A target-date fund is a class of mutual funds or ETFs that periodically rebalances asset class weights to optimize risk and returns for a predetermined time frame.
What is a retirement target date fund?
In addition to the management style, retirement target date funds may be designed to go “to” or “through” retirement. A “to retirement” fund will generally reach its most conservative allocation at the target retirement date and maintain the allocation for the duration of the retirement period.
