Lifecycle fund

(redirected from Life Cycle Fund)

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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Conservative Life Cycle Fund with maximum exposure to equity capped at 25 percent at the age of 35 years and tapering off thereafter (LC-25).
If you are not confident about deciding the asset allocation yourself, your money will be invested in a Life Cycle Fund, a combination of the above three asset classes.
The proportions used here are selected to be the average proportions in a life cycle fund over a working life.
Looking for a solution in a life cycle fund or an asset allocation fund.
An aptly chosen life cycle fund can be made more conservative by selling the stocks after retirement.
The company offers equity, fixed income and alternative strategies, as well as a range of blended asset portfolios, such as life cycle funds. Manning & Napierserve a diversified client base of high-net-worth individuals and institutions, including 401(k) plans, pension plans, Taft-Hartley plans, endowments and foundations.
The decisions that PMs make early in the process significantly affect what happens in sustainment because 55 to 70 percent of a program's life cycle funds is spent on post-acquisition operations and sustainment.
Besides the initiatives taken -- introducing e-NPS, reducing minimum contribution levels, new investment instruments and aggressive life cycle funds, the PFRDA has now taken a further step in this direction by increasing the incentives payable to POPs, an official release from the Ministry of Finance noted.
By far, the most popular QDIAs are life cycle funds, known as target date funds.
If all this seems confusing (and it should), ask your bank or broker about "target date" or life cycle funds. These are funds specifically designed for retirement savings.
The TSP now offers professionally managed life cycle funds that diversify investments throughout the five existing TSP funds through various asset allocations.

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