American Funds 2025 Target Date is a target-date fund offered by American Funds. Target-date funds are designed to provide a diversified portfolio of investments that automatically adjusts to become more conservative as the target date approaches. The American Funds 2025 Target Date fund is designed for investors who are planning to retire in or around 2025.
The fund invests in a mix of stocks and bonds, and the allocation of assets gradually shifts from more aggressive (stocks) to more conservative (bonds) as the target date nears. This helps to reduce risk as investors near retirement age. The fund also offers a variety of investment options, including different risk levels and investment styles.