Target Date Funds
Target date mutual funds are popular among long term investors. If you have an individual retirement account (IRA) or 401k plan from your company, you might familiar with target date mutual funds. These funds invest in bonds and stocks. The assets are allocated based on your retirement age. For instance, if you choose a target date 2025 fund, you might find your mutual fund to invest mix of stocks and bonds.The target date funds are suitable for investors who don’t want to choose their own investment. Using target date mutual fund, investor can maximize their tax and save for future through retirement account or regular brokerage accounts.
Top Mutual Funds
The top performing list is sorted based on its 1 year performance up until June 6, 2014. Investors can find the review and other fund information such as expense ratio, fund manager, yield, turnover rate, sales load, top holdings, top sectors, etc.Best target date 2021-2025 mutual funds 2014 are:
- American Funds 2025 Target Date Retirement Fund (AADTX)
- T. Rowe Price Retirement 2025 Fund (TRRHX)
- Franklin LifeSmart 2025 Retirement Target Fund (FTRTX)
- AllianceBernstein 2025 Retirement Strategy Fund (LTIAX)
- John Hancock Funds Retirement Living through 2025 Portfolio (JLEAX)
- Vanguard Target Retirement 2025 Fund Investor (VTTVX)
- MassMutual RetireSMART 2025 Fund (MMSDX)
- Schwab Target 2025 Fund (SWHRX)
- Legg Mason Target Retirement 2025 Fund Class A (LMPAX)
- Nationwide Destination 2025 Fund Class A (NWHAX)
- Fidelity Freedom 2025 Fund (FFTWX)
- MFS Lifetime 2025 Fund Class A
- JPMorgan SmartRetirement 2025 Fund Class A Shares
- Fidelity Advisor Freedom 2025 Fund Class A
- BlackRock LifePath Active 2025 Portfolio Investor A Shares
American Funds 2025 Target Date Retirement Fund
As the top fund in this category, this American Funds 2025 Target Date Retirement Fund has total assets of $3.4 billion. The investment objective is to achieve the growth, income and conservation of capital to varying degrees. It has annual expense ratio of 0.74%. The CUSIP is 02630T779. Alan N. Berro, James B. Lovelace, Wesley K.S. Phoa are the current fund managers.This AADTX fund is rated with 3-stars and Silver rating by Morningstar analysts. It has YTD return of 4.11%. The yearly performance of this fund since the inception in 2007 is as below:
- Year 2013: 23.33%
- Year 2012: 15.21%
- Year 2011: -1.31%
- Year 2010: 12.24%
- Year 2009: 29.44%
T. Rowe Price Retirement 2025 Fund
Morningstar analysts rank this T. Rowe Price Retirement 2025 Fund with the highest rank of 5-stars and Gold rating. The investment objective is to provide the highest total return over time consistent with an emphasis on both capital growth and income. It has total net assets of $14.4 billion. The annual expense ratio is 0.72%. The fund also has 1.35% dividend yield.More: Popular 401k Mutual Funds
This top asset allocation fund uses Lipper Mixed-Asset Target 2025 Funds Average as its benchmark. The YTD return is 4.16%. It has 10-year annualized return of 7.86% and 3-year annualized return of 11.07%. You can also invest in your 401k offered by T Rowe Price or other brokerage.
The top holdings as of April 2014 are T. Rowe Price Emerging Markets Stock Fund, T. Rowe Price Equity Index 500 Fund, T. Rowe Price Growth Stock Fund and T. Rowe Price Inflation Focused Bond Fund. The top asset locations are Domestic Stock (49.0%) and Foreign Stock (24.4%).
Franklin LifeSmart 2025 Retirement Target Fund (FTRTX)
This Franklin LifeSmart 2025 Retirement Target Fund seeks the highest level of long-term return consistent with its asset allocation. The fund manager is T. Anthony Coffey. The total assets are $99.5 million. It also has 0.98% annual expense ratio. The dividend yield is 1.35%.This best target date 2021-2025 mutual fund has returned 20.18% in 2013 and 10.30% in 2012. In 2014, the YTD return is 2.27%. You can buy this asset allocation fund for your Roth IRA or traditional IRA with as little as $250.
More: Best Target Date 2026-2030 Mutual Funds 2014
The top 10 holdings as of April 2014 represent 67.69% of total holdings. They are Franklin Rising Dividends Fund (12.02%), Franklin Dynatech Fund (8.61%), Templeton Global Total Return Fund (8.33%) and Franklin International Small Cap Growth Fund (8.22%).
Target Date 2021-2025 Mutual Funds 2014 Returns
| No | Fund Name | YTD Return % | 1 Year Return % | 3 Year Return % |
|---|---|---|---|---|
| 1 | American Funds 2025 Target Date Retirement Fund Class A | 4.11 | 15.1 | 11.53 |
| 2 | T. Rowe Price Retirement 2025 Fund | 4.03 | 14.4 | 10.53 |
| 3 | Franklin LifeSmart 2025 Retirement Target Fund Class A | 2.11 | 13.84 | 7.85 |
| 4 | AllianceBernstein 2025 Retirement Strategy Fund Class A | 4.22 | 13.21 | 7.56 |
| 5 | John Hancock Funds Retirement Living through 2025 Portfolio Class A | 3.72 | 12.67 | 8.82 |
| 6 | Vanguard Target Retirement 2025 Fund Investor Shares | 4.13 | 12.65 | 9.68 |
| 7 | MassMutual RetireSMART 2025 Fund Class A | 3.09 | 12.55 | 9.04 |
| 8 | Schwab Target 2025 Fund | 3.18 | 12.37 | 9.86 |
| 9 | Legg Mason Target Retirement 2025 Fund Class A | 4.89 | 11.69 | 8.5 |
| 10 | Nationwide Destination 2025 Fund Class A | 3.77 | 11.64 | 8.34 |
| 11 | Fidelity Freedom 2025 | 3.25 | 11.46 | 8.03 |
| 12 | MFS Lifetime 2025 Fund Class A | 3.36 | 11.37 | - |
| 13 | JPMorgan SmartRetirement 2025 Fund Class A Shares | 3.43 | 11.13 | 9.2 |
| 14 | Fidelity Advisor Freedom 2025 Fund Class A | 3.18 | 11.06 | 7.73 |
| 15 | BlackRock LifePath Active 2025 Portfolio Investor A Shares | 3.11 | 10.85 | 8.13 |
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