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.
E) All of the options are correct.

Question

Quizplus · Accepted Answer

Target-date retirement funds are designed to automatically adjust their asset allocation as the target date (usually the investor's expected retirement date) approaches, becoming more conservative over time. They are also considered a simple but useful strategy for retirement savings, as they provide a hands-off approach for investors who may not want to actively manage their investments. They do not function like hedge funds, which are investment vehicles that use complex strategies and often aim for absolute returns.

Target-Date Retirement Funds