More advisors, investors setting sights on target-date funds | CNBC by Sarah O’Brien
It’s no wonder that target-date funds have emerged as a welcome staple in many workers’ 401(k) plans.
These funds, whose assets automatically shift into more conservative investments as individuals approach retirement, offer sophisticated and diversified exposure to Wall Street with little effort by the investor.
“Most investors tend to be hands-off,” said Janet Yang, a senior analyst at fund-tracker Morningstar. “If you aren’t willing to do the research of individual stocks or individual mutual funds and rebalance your portfolio once a year, target-date funds are a good ‘set-it-and-forget-it’ investment.”