Target Retirement Funds and the Investment Horizon

摘要

Target retirement funds which offer a diversified portfolio for a specified holding period have recently been offered by a number of investment advisory firms. The percentage of stocks in the various portfolios varies widely. Thus, we use mean-variance analysis to determine the optimal mix of stocks and bonds in a portfolio for a given holding period and compare the percentage of equities to that actually held in five popular target retirement funds: Fidelity, Principal, T. Rowe Price, TIAA-CREF, and Vanguard.