Mutual Fund Basics
Target date funds offer portfolios specifically designed to help participants move closer to attaining their retirement goals of appreciation, income and preservation. You don’t have to manage the portfolio yourself, since each target date fund is a group of mutual funds combined into one fund that serves as a single diversified investment.
Experienced investment professionals adjust the fund’s holdings over time as the fund approaches its target date. All target date funds reduce the amount of equity over time. Target date funds emphasize growth when retirement is years away and become increasingly income-oriented as the target date approaches. Review target date fund pros and cons to see if this type of investment might work for you.
Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.
Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.