Target Date Mutual Funds are popular among
retirees and
long term investors. These article will look into 10 categories of best target date mutual funds. These mutual funds are typically offered in tax deferred accounts such as regular brokerage account, traditional IRA, ROTH IRA, 401k account, 403b, 529 plan, etc. Some of the
best performer target date mutual funds of 2011 are: PIMCO Real Income 2029 A, Vanguard Target Retirement 2005 Inv, Invesco Balanced-Risk Retire 2030 A, etc.
Intro
Target Date Mutual Funds are
very smart choice for passive investors. These funds invest in
stocks,
bonds, and other short term securities (
cash or
money market fund). The
fund’s portfolio is adjusted accordingly based on the target date or fund’s objective. The funds' allocation moves toward stressing cash and fixed income (bond) as the funds approach their maturity dates or target dates. These target date funds are known as lifecycle funds or age-based funds.
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Top Performer Target Date Funds 2011 |
Based on their target date, there are currently 10 classes of these target date mutual funds: retirement income fund, Target 2001-2010 fund, Target 2011-2015 fund, Target 2016-2020 fund, Target 2021-2025 fund, Target 2026-2030 fund, Target 2031-2035 fund, Target 2036-2040 fund, Target 2041-2045 fund, and Target 2050+ fund. These
target date funds are essentially similar to balanced funds. Investor can buy this fund and get instant portfolio
diversification into different sectors of stocks and bonds.