Target risk fund

(redirected from Target Risk Funds)

Target Risk Fund

A fund of funds that invests predominantly or exclusively in mutual funds with a certain level of risk. That is, a target risk fund may be conservative, investing largely in bond funds and the like, or aggressive, investing in funds with initial public offerings. The target risk fund may also be somewhere between the two. A target risk fund is useful when an investor has a certain level of risk tolerance.

Target risk fund.

A target risk fund is a fund of funds that maintains a specific asset allocation in order to provide an essentially level exposure to investment risk.

You may find a target risk fund attractive if you want a professional manager to keep your portfolio aligned with your risk tolerance as you pursue specific investment goals.

Target risk funds are generally available with conservative, moderate, and aggressive portfolios, and some mutual fund companies offer even more finely tuned approaches.

Like other funds of funds, the fees you pay for a target risk fund may be higher than you would pay to own each of the individual funds separately. However, these fees pay for an additional level of professional oversight.

References in periodicals archive ?
Target risk funds are defined by their familiar "aggressive," "moderate," and "conservative" descriptions.
Among the investments used by FT 401 advisers, 38% of the DC plan assets they advise are in long-term mutual funds (excluding lifecycle funds), followed by target date funds (28%) and target risk funds (10%).
About two in five are positive toward investing in Target Risk Funds and Target Date Funds.
MFS now offers 16 multi-asset class mutual funds, including the MFS[R] Lifetime[R] series of target date funds and the MFS Allocation series of target risk funds.
offers 27 proprietary mutual funds including target date and target risk funds, stock funds, non-US stock funds, tax exempt bond funds, and taxable bond funds.
Professionally managed services such as managed accounts, and asset allocation suites, including target date and target risk funds, have become staple investment options offered by plan sponsors to their employees.
Additionally, Russell's DC team provides target date glide path design and management, manager research and monitoring, fiduciary structure guidance, implementation services, and asset management solutions including target date and target risk funds, as well as standalone asset class investment options.
Also popular with investors are Target Risk funds and Target Date Funds, with 42 percent and 41 percent holding positive views of those asset allocation funds.
An increasing number of sponsors indicated they believe balanced funds and target risk funds are the best QDIAs for their employee populations.
With the Frost Target Risk Funds, the adviser now offers 16 managed and sub-advised strategies and mutual funds that include institutional and retail share classes.
Nearly three-quarters of investors report participating in a workplace retirement savings plan; Target Date and Target Risk funds remain popular options
These funds were created on September 24, through the reorganization and renaming of Aberdeen's previous range of "Optimal Allocation" target risk funds.