Target Date Funds
Target Date Funds are investment funds designed to automatically adjust their asset allocation based on a specific target date, typically aligned with an investor's retirement date. As the target date approaches, the fund gradually shifts from higher-risk investments, like stocks, to lower-risk options, such as bonds, to help preserve capital.
These funds offer a simple, hands-off approach for investors who prefer not to manage their portfolios actively. They are often used in retirement accounts, making it easier for individuals to save for retirement without needing extensive investment knowledge or frequent adjustments.