Target-date retirement funds
A)change their asset allocation as time passes.
B)are a simple, but useful, strategy.
C)function much like hedge funds.
D)change their asset allocation as time passes and are a simple, but useful, strategy.

Question

Quizplus · Accepted Answer

Target-date retirement funds change their asset allocation as the investor gets closer to retirement, shifting towards more conservative investments. This makes them a useful strategy for retirement planning. Additionally, they are relatively simple to understand and use. They do not function like hedge funds, which involve complex investment strategies and are typically only available to accredited investors.

Target-Date Retirement Funds