A target date fund is a mutual fund designed to automatically shift its asset allocation over time as the investor approaches a specific financial goal date—typically retirement. In the early years, the fund maintains a growth-oriented, equity-heavy allocation. As the target date nears, the portfolio gradually transitions toward more conservative, income-generating assets like bonds and cash equivalents—a process known as the glide path. In India, SEBI's Solution-Oriented Schemes category includes retirement and children's funds that follow similar lifecycle-based allocation principles, offering a hands-off, long-horizon investment solution for goal-based investors.
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