Articles on Stock markets

News, Research and Analysis

Help Center
Introduction
Investment PortfoliosModern Portfolio TheoriesInvestment StrategyPractical Portfolio Management InfoDiversificationRatingsActivities AbroadTrading Markets
Investment Terminology and Instruments
Technical Analysis and Trading
Cryptocurrencies and Blockchain
Retirement
Retirement Accounts
Personal Finance
Corporate Basics
Will my target mutual funds miss their targets?

Will my target mutual funds miss their targets?

Surprisingly, target funds seem to be doing their jobs well enough, despite their ‘one-size-fits-all’ style.

There are many target date mutual funds that have appeared in the past 5-10 years, which are supposed to simplify your investment decisions. These target funds are nothing more than carefully selected asset allocations, based on historical models and a client’s time horizon.

For example, Target Retirement 2018 will probably consist of 70% Fixed Income Funds, and 30% of Equity Funds, and Target Retirement 2028 will probably consist of 50% Fixed Income Funds and 50% Equity Funds, etc.

However, it is the underlying performance of equity markets which would determine whether your Target Mutual Funds will miss or reach their goals.

How Much Time Should I Spend Thinking About My Investments?
How Old Should My Portfolio Manager Be?

Keywords: mutual funds, portfolio performance, retirement plans, target date mutual funds,
How to use the  Accumulation/Distribution in tradingWhat are Fully Diluted Shares?What is currency risk?Why Use Bitcoin?Who Created Ethereum?What is a covered call?What is COBRA?