Lifecycle fund

(redirected from Lifecycle Funds)

Lifecycle Fund

Any mutual fund in a fund family that offers funds with varying levels of risk that are targeted at potential shareholders in different age groups. For example, a fund family may offer three lifecycle funds, one aimed at investors in their 20s and 30s, one at persons in their 40s and 50s, and one for those nearing or in retirement. In this situation, the first fund will carry the most risk because younger investors often seek to make a large return while the third will carry the least risk as investors wish mainly to protect their savings and pensions.

Lifecycle fund.

A lifecycle fund, which is a fund of funds, invests in individual mutual funds that a fund company puts together to help investors meet their objectives without having to select individual funds.

Some companies offer a set of lifecycle funds, each with a different level of risk and return, from conservative to aggressive. In that case, you may choose a lifecycle that's appropriate for reaching your goals within the time frame you've allowed.

The typical pattern is for younger investors to choose a more aggressive lifecycle fund and those nearing retirement to choose a more conservative fund.

With target date funds, which are a type of lifecycle fund, you choose a target retirement year, and the fund manager invests and reallocates your money more and more conservatively as you near retirement.

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Findings on lifecycle funds, including target-date funds and target-risk funds, show the focus shifting from asset maximization to liability matching.
Qualified default investment alternatives--known as lifecycle funds or pre-mixed funds--are a positive way to simplify portfolio allocation decisions.
A recent survey of more than 200 large employers by Aon Hewitt shows 83% offer either targetdate or lifecycle funds in their 401(k)s, and more than a third of the remaining companies are considering doing so.
To gain access to alternative asset classes in a plan that doesn't provide a direct option for investing in them, he suggests looking at target-date, target-risk or lifecycle funds, some of whose models include alternative asset classes.
Eastern European Asset Management Industry - Investment Analysis is part of the Financial Benchmarking in the Asset Management Industry subscription, which also includes research services in the following markets: European Emissions Trading Market, North American Outcome-Oriented Funds: Lifecycle Funds - Investment Analysis, Analysis of Active Extension or Short-enabled Investment Strategies, and European Green Investments Market.
It's an interesting view and relevant to the Gulf in that, whilst lifecycle funds are not exactly a household phenomenon, the way they are managed is very common.
Lifecycle funds offer management assistance by providing investments that represent various asset classes and investment styles in a single fund based on a single retirement date.
These "autopilot" investment vehicles are called target-date or lifecycle funds, and they've become increasingly popular with investors who prefer a hands-off approach to saving for retirement or college.
People can choose safer government securities or invest in the lifecycle funds," Ms.
Or consider investing the 20% in other lifecycle funds with target dates beyond your initial retirement year.
People should be auto-enrolled into lifecycle funds - balanced funds designed to become more conservative as the investor approaches retirement by moving out of equities and into fixed income investments - with set target retirement dates for each member, unless they specifically opt out.
The second is a series of custom lifecycle funds, including a conservative, moderate and aggressive blend with eight underlying mutual funds, both proprietary and nonproprietary blended to form the pre-mixed funds.