A lifecycle fund, sometimes called a fund of funds, is a package of individual mutual funds that a fund company puts together to help investors meet their investment objectives without having to select portfolios of funds on their own
A lifecycle fund is a package of individual mutual funds that a fund company puts together to help investors meet their investment objectives without having to select portfolios of funds on their own. The allocation of funds within the fund is altered as the investor moves closer to retirement to help reduce potential volatility and preserve capital.
Hybrid funds that follow a predetermined reallocation of risk over time to a specified target date, and typically rebalance their portfolios to become more conservative and income-producing by the target date.