Target Date Fund

Business / Taxes / Target Date Fund: A target date fund is a fund of funds that allows you to link your investment portfolio to a particular time horizon, typically your expected retirement date. In fact, a target date fund characteristically has a date in its name, such as a 2015 Fund or a 2030 Fund. A target fund aiming at a date in the somewhat distant future tends to have a fairly aggressive asset allocation, with a focus on growth. As the target date approaches, the fund is designed to become more conservative to preserve the assets that have accumulated and eventually to provide income. Each fund company formulates its own approach to risk, so that the allocation of one 2025 Fund may be noticeably different from the allocation of a 2025 Fund from a different company. You can find model portfolios and statements of investment strategy in the fund’s prospectus. Each mutual fund company that offers target date funds tends to offer a series, with dates five or ten years apart. Most companies populate their funds of funds with individual funds from their fund family, though some companies add mutual funds or exchange traded funds from other investment companies. Like other funds of funds, the fees you pay for a target date fund may be higher than you would pay to own each of the individual funds separately. However, these fees pay for an additional level of professional oversight.

Other Words for Date

Date Noun Synonyms: time, year, season, period, day, age, era, epoch, stage, phase
Date Verb Synonyms: entertain, escort, go out (with), go steady (with)
MORE

Other Words for Fund

Fund Adjective Synonyms: supply, stock, reserve, store, pool, cache, reservoir, repository, mine
Fund Noun Synonyms: finance, back, capitalize, stake, support, pay for, endow, grant, subsidize
MORE

Other Words for Target

Target Verb Synonyms: goal, object, objective, aim, end, butt, quarry
MORE

Lifecycle Fund

Business / Taxes / Lifecycle Fund: A lifecycle fund, which is a fund of funds, invests in individual mutual funds that a fund company puts together to help investors meet their objectives without having to select individual funds. Some MORE

Proprietary Fund

Business / Taxes / Proprietary Fund: Proprietary mutual funds are offered for sale by the financial institution — such as a bank, investment company, or brokerage firm — that sponsors the funds. Characteristically, the funds' names i MORE

Projected Maturity Date

Business / Finance / Projected Maturity Date: With CMOs, the date at the end of the estimated cash flow window where final payment is made. MORE

Links
Home
Glossary
Thesaurus