Target Risk Funds
38 Pages Posted: 12 Jan 2015 Last revised: 25 Apr 2015
Date Written: January 8, 2015
There is a vast literature which shows that investors don’t make rational decisions in allocating resources among both different types of investments and different individual investments. Target risk funds and target date funds are two types of mutual funds that make the asset allocation decision for an investor Target risk funds have not been studied before: this article is the first comprehensive study of their characteristics and performance and how they compare to target date funds as an investment vehicle.
Keywords: target risk funds, mutual funds
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