टार्गेट तारखेसह संरचित केलेले म्युच्युअल फंड किंवा एक्स्चेंज-ट्रेडेड फंड (ईटीएफ) यांना टार्गेट-डेट फंड म्हणतात. गुंतवणूकदाराच्या भांडवलाच्या आवश्यकतांची पूर्तता करण्यासाठी निधीची रचना केली जाते, म्हणूनच "टार्गेट तारीख" हा शब्द आहे अशा प्रकारे, टार्गेट-डेट फंड लाईफसायकल फंडच्या कॅटेगरीमध्ये येतो, ज्यामध्ये पोर्टफोलिओचे वाटप वेळेनुसार अधिक रूढिचुस्त होते.
इन्व्हेस्टर सामान्यपणे त्यांच्या निवृत्तीच्या सुरुवातीला योगदान देण्यासाठी टार्गेट-डेट फंड निवडतील. However, investors who are saving for a future expense, like a child’s college tuition, are more likely to utilize target-date funds.
When the target date approaches, the asset allocation of a target-date fund is often planned to progressively move to a more conservative profile in order to reduce risk.
The convenience of placing all of an investor’s investing actions on autopilot in a single vehicle is what attracts investors to target-date funds.
Typically, target-date funds mature every five years, for example, in 2035, 2040, and 2045.
Although target-date funds are still substantially more expensive than other forms of mutual funds, their expense ratios have decreased significantly in recent years.
To achieve the investment return objective, target date funds use a conventional portfolio management methodology to target asset allocation over the fund’s period. Target-date funds are said to as exceptionally long-term investments because they are named after the year the investor intends to start using the assets.
