Target retirement mutual funds are rapidly gaining popularity because of their convenience, but they may not be the set-it-and-forget-it option that investors think, according to a report from MarketWatch.
Some fund complexes are willing to take greater risks than others, for example, and some target retirement portfolios spread the money too thinly and risk diluted returns.
"They take care of the funds to invest in," explained Jim Peterson, a vice president at the
That's because, as MarketWatch points out, not all target retirement funds are created equally. Some take more stock market risks, which can improve returns, while others are more conservative, which can lower returns.
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