Learn more about this investment option by reading Lifestyle Funds: choosing a strategy that fits you best.
Of the 7,6001 mutual funds on the market, lifestyle funds are designed to simplify an investor’s selection of a diversified, risk-appropriate portfolio. Individual funds target different levels of risk tolerance, ranging from conservative to aggressive. What’s more, lifestyle funds are managed, monitored and regularly rebalanced by an experienced portfolio management team to maintain a consistent risk/return profile in the face of changing market conditions. Investors value the lifestyle funds’ ability to offer instant diversification across a broad range of asset classes.
To some, the concept of owning one fund that comes complete with a prepackaged, diversified portfolio — under experienced management — may sound unique. But this approach isn’t uncommon and may suit those investors without the time or knowledge to create a diversified, risk-appropriate portfolio on their own. In other words, this fund choice may appeal to the ‘life-style’ of certain investors.
Investors select the lifestyle fund — which targets a particular level of risk — that most closely matches their own goals and risk profile. For example, you may select a fund to help you achieve an intermediate goal, such as funding a college education, or one that supports the long-range purpose of providing retirement income. What’s more, your lifestyle fund can operate as the major holding in your portfolio or complement existing products. Each fund option (generally, major fund families offer four or five options) comes with a targeted asset allocation. In general, these funds range from income funds, which invest 20% of their assets in equities (stocks) and 80% in fixed income (bonds), to highly aggressive growth funds with a 100% equities allocation. Of course, investors should regularly reassess their own risk tolerance to ensure the fund they’ve selected matches their current risk profile. In the event one particular lifestyle fund is no longer compatible with their risk profile, they can move into a different lifestyle fund.
TIAA-CREF Lifestyle Funds offer a convenient, single-solution approach to investing. The funds provide extensive diversification and a range of risk levels using a sophisticated asset allocation process managed by an experienced investment team. Key product differentiators include:
|TIAA-CREF Lifestyle Funds|
|Fund name||Equity allocation||Fixed-income allocation|
|Lifestyle Aggressive Growth||100%||0%|
TIAA-CREF Lifestyle Funds are actively managed, so their asset allocations are subject to change and may vary from those shown.
To learn more about TIAA-CREF Lifestyle Funds:
Diversification cannot eliminate the risk of investment losses. As with all mutual funds, the principal value in a Lifestyle Fund is not guaranteed. The fund is subject to risks associated with the types of securities held by each of its underlying funds.
You should consider the investment objectives, risks, charges and expenses carefully before investing. Visit tiaa-cref.org/prospectuses for a current prospectus that contains this and other information. Please read the prospectus carefully before investing.
In addition to the fees and expenses associated with Lifestyle Funds, there is exposure to fees and expenses associated with the under lying investment options.
TIAA-CREF Individual & Institutional Services, LLC, and Teachers Personal Investors Services, Inc., members FINRA, distribute securities products.
1 Investment Company Institute (ICI), 2012 Investment Company Fact Book, © 2012 ICI
2 A fundamental active investment style is focused on outperforming benchmarks through a stock selection process that considers a company’s financial and business strengths, whereas a quantitative active style employs mathematical or statistical models to help with decisions.
3 The expense ratio on all mutual fund products and variable annuity accounts managed by TIAA-CREF is generally less than half the mutual fund industry average. Source: Morningstar Direct (6/30/12), based on Morningstar expense comparisons by category.