Target date funds have 'quantitatively large effects' on stock prices
close share links Target date funds are a staple in many workplace retirement plans. Often used as a default investment option, TDFs optimize risk when an individual is young and gradually adjust to a more conservative investment mix as retirement nears, effectively relieving investors of having to actively rebalance their portfolios between stocks and bonds. Work smart with our Thinking Forward newsletter Insights from MIT experts, delivered every Tuesday morning. Email Address The option has proved popular: The total amount of assets invested in TDFs increased to $1.4 trillion at the end of...
Source: mit.edu
