targetdatefonder
A target date fund, often abbreviated as TDF, is a type of mutual fund or fund-of-funds designed to automatically adjust its asset allocation over time toward a more conservative mix as a specified target retirement date approaches. They are commonly used in defined contribution plans and individual retirement accounts as a simple, all-in-one investment option.
How they work: A target date fund follows a glide path, shifting from higher-risk assets like equities
Management and holdings: Most TDFs invest in a diversified mix of underlying funds, typically including domestic
Costs and considerations: Target date funds charge ongoing management fees, which vary by sponsor and fund
Advantages and criticisms: TDFs offer simplicity, automatic rebalancing, and broad diversification in a single vehicle, making
History and prevalence: The concept emerged in the late 20th century and gained prominence in employer-sponsored