Target-date fund

A fund that shifts its mix as a chosen year approaches

In detail

A year such as 2050 is named, and as it nears the fund cuts equities and adds bonds. It automates the idea of accepting swings while the money is far off and turning defensive as the spending date arrives. The manager makes every shift on schedule.

Example

A 2060 fund may hold 90% equities today and be designed to fall to about 50% by 2050.

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For learning, not investment advice. Decisions are your own.

StockFit · TrueNorthLabs Inc.