Although lifecycle funds have grown tremendously in popularity and are being sold to investors as a sure retirement income solution, they and other formulaic asset allocation funds—such as balanced funds, managed accounts or funds that use Monte Carlo simulation—may not live up to their promise, according to a report from the Compass Institute.

The investment strategy research organization studied the results of such funds over the past 10 years and found that they will likely fail investors because they don’t capture enough of a market’s upside or limit its downside.

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