Target-date retirement funds
A) are funds of funds diversified across stocks and bonds.
B) are inappropriate for most investors.
C) have very high fees.
D) function much like hedge funds.

Question

Quizplus · Accepted Answer

Target-date retirement funds are designed as "funds of funds," meaning they invest in a variety of other mutual funds or investment vehicles to create a diversified portfolio typically consisting of stocks and bonds. Their allocation adjusts over time, usually becoming more conservative as the target date (usually the investor's expected retirement year) approaches.

Target-Date Retirement Funds