Who typically offers target funds?

Target funds, also known as target-date funds, are investment products designed to be a one-stop investment solution for retirement planning. They automatically adjust the asset allocation between equities and fixed income over time to become more conservative as the target date (typically retirement age) approaches.

The primary providers of these funds include mutual fund managers, banks, trust companies, and insurance companies. Each of these entities has the infrastructure and expertise to manage a diversified investment portfolio and make adjustments to the asset allocation as necessary.

Mutual fund managers, for instance, focus on the investment strategy and reallocating assets to meet the fund's objective, while banks and trust companies may offer these products as part of their wealth management services. Insurance companies often provide target funds within their retirement products, such as variable annuities.

In contrast, wealth management firms may incorporate target funds into their offerings, but they are not the exclusive providers. Government institutions do not typically offer target funds as their focus tends to be on broader economic policies rather than individual investment products. Individual investors also do not offer target funds; rather, they can choose to invest in them, but they do not create or manage these funds.

This understanding of the different entities that provide target funds highlights the variety of financial