A target-date fund is a kind of mutual fund that’s designed to assist traders attain a particular monetary objective, reminiscent of retirement, by robotically adjusting the fund’s asset allocation over time. The 2025 goal date fund is particularly designed for traders who plan to retire across the 12 months 2025.
Because the investor will get nearer to their goal retirement date, the fund will regularly shift its asset allocation from extra aggressive investments, reminiscent of shares, to extra conservative investments, reminiscent of bonds. This helps to cut back the danger of shedding cash within the years main as much as retirement.