Refers to a formula that defines the asset allocation mix of a target date fund, based on the number of years to the target date. The Glidepath creates an asset allocation that becomes more conservative (i.e., includes more fixed-income assets and fewer equities) the closer a fund gets to the target date. The term is derived from an aircraft's line of descent to land.
Refers to a formula that defines the asset allocation mix of a target date fund, based on the number of years to the target date. The Glidepath creates an asset allocation that becomes more conservative (i.e., includes more fixed-income assets and fewer equities) the closer a fund gets to the target date. The term is derived from an aircraft's line of descent to land.