lifecycle fund

Definition

A highly diversified mutual fund designed to remain appropriate for investors in terms of risk throughout a variety of life circumstances. Accordingly, lifecycle funds offer different risk profiles that investors can shift invested funds between in order to manage risk effectively as they move from youth to middle age to retirement. Although lifecycle funds all share the common goal of first growing and then later preserving principal, they can contain any mix of stocks, bonds, and cash.

Use lifecycle fund in a sentence

You should always try to do your research before you ever decide to enter in to a lifecycle fund and get involved with it.

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The lifecycle fund had been performing well as of late, and we saw no need to alter it much as the risk remained low for the foreseeable future.

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My financial advisor suggested that I put most of my money in a lifecycle fund because I would save significantly on fees from not have to rebalance my investments as the years progress.

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