A target-date fund is a sort of mutual fund that’s designed to assist buyers attain a particular monetary aim, corresponding to retirement, by mechanically adjusting the fund’s asset allocation over time. The 2025 goal date fund is particularly designed for buyers who plan to retire across the 12 months 2025.
Because the investor will get nearer to their goal retirement date, the fund will regularly shift its asset allocation from extra aggressive investments, corresponding to shares, to extra conservative investments, corresponding to bonds. This helps to cut back the chance of shedding cash within the years main as much as retirement.