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Alvita Ukrainskiy
on Nov 04, 2024

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Target-date retirement funds are not

A) funds of funds diversified across stocks and bonds.
B) designed to change their asset allocation as time passes.
C) a simple, but useful, strategy.
D) designed to function much like hedge funds.

Target-date Funds

Mutual funds that automatically adjust their asset mix towards more conservative investments as the target date (usually retirement) approaches.

Asset Allocation

The process of dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash, to optimize risk and reward based on an individual's goals and risk tolerance.

Hedge Funds

Investment funds that deploy a variety of strategies to earn returns on their capital, often engaging in more complex and higher-risk trades than traditional mutual funds.

  • Understand the characteristics and purpose of target-date retirement funds.
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Sierrah SivilsNov 08, 2024
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