Investment for life

with life-cycle funds

Investment for life

with life-cycle funds

What are life-cycle funds?

Life-cycle funds are also known as target date funds. These are mixed funds that combine shares with bonds. At the beginning, they focus on the potential returns offered by shares in the long term.

They have an official maturity date or a target date. This is the point in time when you intend to free up your capital to achieve your goals. In the latter case the fund simply continues to run.

However, as time passes and the target or maturity date approaches, both variants will invest more defensively by assigning less weight to shares in favour of fixed-income investments.

Why choose life-cycle funds?

Life-cycle funds are particularly suitable for investors looking to invest long-term, who don't have the time or knowledge themselves to follow an investment approach in a disciplined manner.
Strong fluctuations are not wanted, for example, at a time when you are thinking about freeing up your capital to make your plans a reality. Life-cycle funds actively respond to this situation. 

Active management

Life-cycle funds have the flexibility to depart, in the interim, from the predefined target allocation between shares and bonds, which allows them to actively respond to potential opportunities in the market. 

Suitable for periodic investment

With life-cycle funds you can also build up capital via periodic deposits. By investing a fixed amount every month, you can build up a good amount of capital. You will reap the full benefit of price fluctuations that are inherent to the financial markets. This is because during each price dip, units are bought at more favourable prices. That gives returns in the longer term a shot in the arm.

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