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Market Extra: Target-date funds can be the right choice if you’re this kind of investor

When it comes to investment products, the ones that get the least attention turn out to have the best investor returns, according to Morningstar.

Enter target-date funds, which have grown to nearly $900 billion under management by the end of 2016 since first launching less than 25 years ago.

A target-date fund, also known as a life-cycle fund, is a mutual fund with a mix of assets — typically stocks and bonds — structured to become less risky as investors approach retirement age. Returns are never guaranteed, but depend on how markets perform.

For example, a target-date fund for 2050 will have a much higher allocation to equities than a fund with 2020 date.

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