Target-Date Fund

A target-date fund is a fund offered by an investment company that seeks to grow assets over a specified period. The structuring of these funds addresses an investor’s capital needs at some future date—hence, the name target date. Most often, investors will use a target date fund to apply to their onset of retirement. However, these mutual funds may find a use in many portfolios that need to specify funds for a future event such as a child entering college.