A goal date fund is a kind of mutual fund that routinely 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 is usually a good possibility for traders who desire a hands-off method to retirement planning. The fund supervisor will make the entire funding choices, and the investor doesn’t want to fret about rebalancing the portfolio over time. Goal date funds additionally supply diversification, which may help to scale back danger.
