A goal date fund is a kind of mutual fund that routinely adjusts its asset allocation over time, primarily based on a goal retirement date. The Constancy 2025 Goal Date Fund is designed for buyers who plan to retire round 2025. The fund invests in a mixture of shares, bonds, and different belongings, and the asset allocation steadily turns into extra conservative because the goal retirement date approaches.
Goal date funds generally is a good choice for buyers 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 supply diversification, which may help to scale back danger.
