Target Date Funds: Understanding Their Pros and Cons

31
Jul

Target Date Funds: Understanding Their Pros and Cons

Target date funds (TDFs), also known as lifecycle or age-based funds, are mutual funds that automatically adjust their asset allocation over time, becoming more conservative as the investor’s selected retirement date approaches. The underlying principle of TDFs centers on an optimal risk-reward trade-off that accounts for an individual’s investment horizon. How TDFs work The operation of TDFs is rooted in

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