Lifecycle fund is described as?

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Multiple Choice

Lifecycle fund is described as?

Explanation:
Lifecycle funds are target-date funds that blend stocks, bonds, and other assets and automatically adjust the mix as you approach your retirement date. The idea is to take more risk early on to grow the account, then gradually reduce risk by shifting toward bonds and cash as the retirement date nears. This automatic risk adjustment through a glide path is what defines a lifecycle fund. It isn’t a fixed-risk fund, a cash-like fund, or a heavily leveraged fund—the allocations change over time based on your target retirement date.

Lifecycle funds are target-date funds that blend stocks, bonds, and other assets and automatically adjust the mix as you approach your retirement date. The idea is to take more risk early on to grow the account, then gradually reduce risk by shifting toward bonds and cash as the retirement date nears. This automatic risk adjustment through a glide path is what defines a lifecycle fund. It isn’t a fixed-risk fund, a cash-like fund, or a heavily leveraged fund—the allocations change over time based on your target retirement date.

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