Asset allocation is an asset category that includes balanced and lifestyle portfolios. Balanced portfolios are composed of equities, bonds and cash investments. They are actively managed, and the distribution of these assets can differ over time. Lifestyle portfolios are strategically managed to maintain a present asset allocation that changes slowly over time.
Please note that the use of asset allocation does not guarantee returns or insulate you from potential losses and diversification does not assure a profit and does not guarantee against loss in a declining market.
Target Date Funds are designed for people who plan to retire during or near a specific year. These funds use a strategy that reallocates equity exposure to a higher percentage of fixed investments; the funds will shift assets from equities to fixed-income investments over time. As a result, the funds become more conservative over time as you approach retirement. It’s important to remember that no strategy can assure a profit or prevent a loss in a declining market and the principal value of the target date funds is not guaranteed at any time, including the target date. Target Date Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of the Target Date Funds, an investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds. The funds are not guaranteed at any point and may lose value.