A target date fund is a type of mutual fund that is designed to help investors reach a specific financial goal, such as retirement, by automatically adjusting the fund’s asset allocation over time. Target date funds are typically invested in a mix of stocks, bonds, and other investments, and the asset allocation is gradually shifted from more aggressive investments, such as stocks, to more conservative investments, such as bonds, as the target date approaches.
Target date funds are a popular choice for investors who want a simple and convenient way to save for retirement. They offer a number of benefits, including: