Lifecycle fund

(redirected from Life Cycle 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.
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.
Mentioned in ?
References in periodicals archive ?
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.
Mumbai: The life cycle funds are the type of asset-allocation mutual funds which is structured according to the age of the investor.
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.
I will also consider how risk in such plans might be reduced by life cycle funds and other means and how much employees might gain from such investment strategies.
The TSP now offers professionally managed life cycle funds that diversify investments throughout the five existing TSP funds through various asset allocations.
The legislation would preempt state law and expand fiduciary protection for plan sponsors that give so-called life cycle funds and managed accounts to employees who don't choose other investments.
Make available convenient asset allocation models that are often referred to as "life cycle funds," which offer risk diversification across multiple asset classes and funds as well as portfolio rebalancing.
Founded in 1970, we offer US and non-US equity, fixed income, and a range of blended asset portfolios, such as life cycle funds and actively-managed exchange-traded fund (ETF)-based portfolios.

Full browser ?