A goal date fund is a sort of mutual fund that robotically adjusts its asset allocation over time, based mostly on a goal retirement date. The Constancy 2025 Goal Date Fund is designed for traders who plan to retire round 2025. The fund invests in a mixture of shares, bonds, and different property, and the asset allocation progressively turns into extra conservative because the goal retirement date approaches.
Goal date funds generally is a good choice for traders who desire a hands-off strategy to retirement planning. The fund supervisor will make the entire funding selections, and the investor doesn’t want to fret about rebalancing the portfolio over time. Goal date funds additionally provide diversification, which will help to scale back threat.
