A target-date fund is a kind of mutual fund that’s designed to assist traders attain a particular monetary objective, resembling retirement, by robotically adjusting the fund’s asset allocation over time. The 2025 goal date fund is particularly designed for traders who plan to retire across the yr 2025.
Because the investor will get nearer to their goal retirement date, the fund will progressively shift its asset allocation from extra aggressive investments, resembling shares, to extra conservative investments, resembling bonds. This helps to cut back the chance of dropping cash within the years main as much as retirement.