A target date fund is a type of mutual fund that automatically adjusts its asset allocation over time, based on a target retirement date. The Fidelity 2025 Target Date Fund is designed for investors who plan to retire around 2025. The fund invests in a mix of stocks, bonds, and other assets, and the asset allocation gradually becomes more conservative as the target retirement date approaches.
Target date funds can be a good option for investors who want a hands-off approach to retirement planning. The fund manager will make all of the investment decisions, and the investor does not need to worry about rebalancing the portfolio over time. Target date funds also offer diversification, which can help to reduce risk.
