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Article:
Do Lifestyle Funds Provide Greater Security? by: Ulli G. Niemann With the stock market stubbornly refusing to settle down and smooth out, Wall Street has been scrambling to come up with 'product' they can sell to gun shy investors. One such new concept is the Lifestyle fund; an extremely diversified package designed to be the single fund in an investor's portfolio. There are two general types of these funds, in which assets are spread out across a wide range of stocks and bonds. In one, securities are held directly, in the other, assets are held through other funds. Fidelity's Freedom 2030 is an example of the first type. It targets a specific retirement date, and the cash and bond stakes rise as that date approaches. This type of fund has created a perception among investors that its value will not drop and that it is safe. But, in fact, these are no safer than a standard mutual fund. Since we sold all of our investment positions on October '13
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