A diversified portfolio that automatically shifts the asset mix away from equities and toward more conservative fixed-income investments as you approach the year of your retirement is called a(n) ____ fund.

Question

Quizplus · Accepted Answer

A target-date retirement fund is designed to adjust the asset mix based on the anticipated retirement date of the investor. As the retirement date approaches, the fund automatically shifts the asset mix towards safer fixed-income investments, reducing the exposure to equities. This helps to reduce the risk of incurring significant losses close to retirement age. Therefore, a target-date retirement fund is the best choice based on the given description.

A Diversified Portfolio That Automatically Shifts the Asset Mix Away