Target Funds

They must have some fees maybe not a load but they must have a management fee. One of my concerns about these types of mutual funds is that they may invest in several mutual funds in their own family to achieve their stock fund, bond fund, and money market fund mixes. Do you pay a management fee to the target fund and the target fund pays management fees to the other mutual funds they buy? If so that sounds like you’d be paying management fees twice.

I actually like the idea of someone being able to take a “couch potato” approach if that is the way you want to approach it. They will automatically reposition your percentage of stocks and bonds as you get older. If you don’t want to take the time to do it yourself and search out funds that give you the diversity then target funds aren’t the worst thing out there.