Getting Started: Target-date funds offer one-stop shopping

April 20, 2015 12:17 PM

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Target-date funds have become a popular hands-off investment choice. And a new study shows that investors who make the most of these funds are coming out ahead.

According to Morningstar, investor returns - which take into account investor contributions and are a better measure of earnings - averaged 6.1 percent annually in target-date funds over the last 10 years. Target-date funds' total return was just 5 percent annualized.

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