Life cycle funds
A)are designed for people with at least 20 years until retirement.
B)require you to decide how to allocate your investment among stocks,bonds,and money market instruments.
C)grow less conservative as your retirement date nears.
D)try to tailor their holding to the investor's individual age,and risk tolerance.

Question

Quizplus · Accepted Answer

Life cycle funds are designed to tailor the holdings to the investor's individual age and risk tolerance. Therefore, option D is the correct choice. Option A is incorrect because life cycle funds can also be designed for people with less than 20 years until retirement. Option B is incorrect because life cycle funds usually do not require the investor to decide how to allocate their investments. Option C is incorrect because life cycle funds usually become more conservative as the retirement date nears.

Life Cycle Funds