Target-date funds recently got government approval as the default option in 401(k) plans. On the other hand, a recent study by
While critics say target-date funds are a better long-term investment than money-market funds -- the former default option when workers didn't specify a choice -- some say investors would fare better taking an active role.
The funds, which gradually shift out of stocks and into bonds to reduce risk, have mushroomed from 23 funds with $8 billion in 2000, to more than 250 with $160 billion under management, writes Andrew Clark, head of research for