The fund consists of a certain proportion of investment objects (such as stocks, bonds, cash, etc.). ) achieve the goal of reaching a certain income in a certain time (that is, the year of retirement). Its advantages include:
1. Simple management: Because the investment strategy is relatively fixed, the investment risk of the pension target date fund is easier to control.
2. Market dispersion: Pension target date funds usually invest in a variety of asset classes and markets, which makes the risks of funds more dispersed and balanced.
3. High security: Because the fund manager will adjust the asset composition according to the investment target, investors can avoid high-risk investment decisions when the stock market and financial market collapse.
4. Long investment cycle: It adapts to a longer investment cycle, so it can better cope with inflation and other future uncertainties.
5. Automatic adjustment: With the automatic adjustment of investors' age and target date, the fund will gradually reduce high-risk assets such as stocks and gradually increase high-risk assets such as bonds, thus reducing the fund risk.