T. Rowe Price Target Retirement Funds are one-step portfolios comprised of various T. Rowe Price mutual funds offering instant diversification into stocks and bonds, as well as automatically shift to a more conservative blend as you near your target retirement date.
In a target-retirement fund, professionals decide what percentage of your money belongs in stocks and what percentage should go into bonds and cash. The professional money managers also allocate your money between large-company stocks and small-company stocks, between foreign and U.S. stocks and between growth and value stocks using T. Rowe Price Mutual funds. Most important, as you get closer to retirement, the funds adjust, gradually raising their allocation to lower-risk bonds and cash.
Target-retirement funds allow people who know they should be saving for retirement but know little or nothing about investing -- and lack the time and energy to learn -- to invest in funds that allocate their money automatically among stocks, bonds and cash. T. Rowe Price Fact Sheets.