InvestorQ : What is a target-risk fund?
Aashna Tripathi made post

What is a target-risk fund?

6 months ago
Target risk funds are funds that target a certain risk exposure, usually conservative, moderate, or aggressive. The managers run the fund in a way that maintains the risk level and keeps it constant over time. Target risk funds require you to decide what type of investor you are and how much risk you’re willing to take. You may be an aggressive investor, a conservative investor, or somewhere in between. The fund is expected to align with your risk tolerance.

The fund manager of a target-risk fund is responsible for overseeing all the securities owned within the fund to ensure that the level of risk is not greater or less than the fund's target-risk exposure. With a target-risk fund, investors can modify their risk exposure over the long term.