Target-Date Funds 2.0
04/07/2010 0 comments
April 5, 2010
By Ruthie Ackerman from BankInvestmentConsultant
After the financial storm in 2008, target-date funds have still been the good choices of retirement investment tools. According to the Morningstar's 2010 Target-Date Series Industry Survey, the returns of target-date funds over the past three years exceeded the funds' total returns in every target-date category except for one, and far exceeded returns on a traditional mutual fund. Target-date funds have structural advantages over traditional mutual funds. Meanwhile, there are also some criticism about them recently. Mr. Cunningham, a managing director at Manning & Napier Advisors, said that in the next year a new generation of funds will emerge. We hope the second generation of target-date funds will have better strategies of asset allocation and give better communication from fund companies and risk protection to investors.
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