AARP Financial is now offering three index funds specifically designed for investors age 50 or older with a mid- to long-term time frame. AARP's first offerings since it severed its 21-year-relationship with Scudder Investments in December, the funds will invest between 25% and 75% of assets in stock index funds.

The conservative choice will invest 20% in a broad-based U.S. index fund, the MSCI U.S. Investable Market 2500 Index; 5% in an international stock fund, the MSCI EAFE Index; and 75% in a U.S. bond index fund, the Lehman Brothers Aggregate Bond Index. The aggressive fund will have 60% invested in the U.S. stock index, 15% in the international stock index and 25% in U.S. bonds. The moderate fund falls in between the two.

"The AARP funds allow investors easy access to low-cost mutual funds," said Nancy M. Smith, VP of investment services at AARP Financial. "The AARP funds provide diversification and professional rebalancing. Many investors find it difficult to construct a diversified portfolio and rebalance it on a regular basis, which is why those important features are already built into the AARP funds."

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