Simplify and diversify at the same time according to your risk tolerance!
Target-risk funds, sometimes referred to as life-style funds, offer diversification and a constant range of risk all in one fund.
The funds invest in a variety of underlying funds in proportions that match a certain level of risk, ranging from conservative to aggressive. You pick the specific fund that currently has the right mix for you of different types of investments, such as stocks and bonds, knowing that the fund's risk level is designed to stay within a certain range.
It is important to understand that the funds do not consider your investing time horizon or the amount of risk you should consider taking in order to have the best chance of meeting your financial goals. Be sure to review your overall investment strategy (see how ICMA-RC can help).
The Vantagepoint Model Portfolio Funds are target-risk funds available:
- to IRA and RHS plan investors (see table below); and
- to certain 401 and 457 plan investors as an underlying fund of the VantageTrust (log into your account to view availability and fee-adjusted profile information).
|Model Portfolio Funds|
|Vantagepoint Model Portfolio Conservative Growth Fund|
|Vantagepoint Model Portfolio Traditional Growth Fund|
|Vantagepoint Model Portfolio Long-Term Growth Fund|
|Vantagepoint Model Portfolio All-Equity Growth Fund|
Prefer a simple, diversified approach that seeks to reduce risk over time? Then learn about The Vantagepoint Milestone Funds.