Investing term

What is Target-date fund?

A single fund that automatically rebalances and gets more conservative as you approach a target retirement year.

A target-date fund is a single fund built around a retirement year (like "2050") that automatically diversifies, rebalances, and gradually shifts from stocks toward bonds as that date nears. It's the ultimate one-decision investment — you pick the fund matching your timeline and it manages the whole glide path for you, ideal for hands-off, long-term saving.

For example

Choose a "2055" target-date fund and it holds mostly stocks today, automatically getting more conservative each year as 2055 approaches.

Target-date fund is taught hands-on in Stage 10 — Building Your First Portfolio.

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Related terms

AllocationHow your portfolio is split across asset classes (stocks, bonds, cash, alternatives).Balanced fundA single fund that holds both stocks and bonds at a fixed ratio, automatically rebalanced.Core-and-satelliteA portfolio structure where most of your money sits in a 'core' diversified base, with smaller 'satellite' bets around the edges.DriftThe gradual shift in your portfolio's mix as some assets grow faster than others.
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