Target-Date Fund

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Dictionary Says

Definition of 'Target-Date Fund'

A mutual fund in the hybrid category that automatically resets the asset mix (stocks, bonds, cash equivalents) in its portfolio according to a selected time frame that is appropriate for a particular investor. A target-date fund is similar to a life-cycle fund except that a target-date fund is structured to address some date in the future, such as retirement.
Investopedia Says

Investopedia explains 'Target-Date Fund'

These funds have become popular with 401(k) plan investors. While proponents cite the convenience to investors of putting their investing activities on autopilot in one fund, critics are wary of these funds' one-size-fits-all approach.

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