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What is a Target-date Fund? Comments

  • By Jocelyn Black Hodes, DailyWorth's Resident Financial Advisor
  • June 21, 2013

A target-date fund is a mutual fund comprised of a portfolio of mutual funds with a particular asset allocation based on a specific investing goal time frame that adjusts to become less risky over time. For example, a fund with a target date of 15 or more years will typcially have a more aggressive, stock-heavy allocation and over time will gradually adjust its allocation towards more conservative investments as the target date approaches.

 

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