A target date fund is a type of mutual fund that is designed to help investors reach a specific financial goal by a certain date, such as retirement. Target date funds are typically invested in a mix of stocks, bonds, and other asset classes, and the asset allocation of the fund will gradually change over time to become more conservative as the target date approaches. This is because stocks are generally considered to be more risky than bonds, and investors typically want to reduce their risk as they get closer to retirement.
Target date 2025 funds are designed for investors who are planning to retire in or around the year 2025. These funds will typically invest in a mix of stocks and bonds, with a higher allocation to stocks in the early years and a gradually increasing allocation to bonds as the target date approaches. This asset allocation is designed to help investors achieve a balance between growth and risk, and to help them reach their retirement goals.
