life-cycle fund


Also found in: Acronyms.

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.

life-cycle fund

A mutual fund that maintains a certain mix of stocks and bonds in order to attract investors of a given age and risk preference. Mutual fund families sometimes offer several different life-cycle funds with various asset allocations so as to appeal to investors of different ages.
References in periodicals archive ?
With life-cycle funds, the allocations for investors vastly improve.
While all life-cycle funds start off aggressively and then grow more conservative, the rate of progression varies widely.
The Managed Payout Funds will broaden Vanguard's lineup of retirement income solutions, which range from traditional balanced and life-cycle funds to immediate annuities and customized withdrawal plans," said Vanguard CEO John J.
Alternative assets - Hedge funds - Commodity futures - Life-cycle funds - Book income-orientated investments - Transition management
Utkus suggested that plan sponsors consider adding plan features such as automatic rebalancing options, life-cycle funds, and managed account services to their plans.
As mentioned, the My Retirement Portfolios have a broader level of diversification and style exposure than most life-cycle funds on the market.
Broadly, life-cycle funds provide a well-diversified investment solution in a single fund.