What is a Target Date Fund

Quite simply, target-date funds are designed to be an “all-in-one” solution for investing your retirement savings. These investments usually hold a mix of stocks, bonds and cash, as well as other types of investments. What makes target-date funds unique is that over time this mix gradually shifts to become more conservative as you near retirement, so as to better protect your retirement savings. The name of the fund often refers to the ‘target date’, which usually corresponds to your anticipated retirement date.