A target-date fund is a type of mutual fund that is designed to help investors reach a specific financial goal, such as retirement, by automatically adjusting the fund’s asset allocation over time. The 2025 target date fund is specifically designed for investors who plan to retire around the year 2025.
As the investor gets closer to their target retirement date, the fund will gradually shift its asset allocation from more aggressive investments, such as stocks, to more conservative investments, such as bonds. This helps to reduce the risk of losing money in the years leading up to retirement.
