Core Insights - The article discusses the differences between Target Date Funds (TDF) and Target Risk Funds (TRF) in the context of retirement planning, highlighting their unique characteristics and suitability for different types of investors [1][2]. Group 1: Target Date Funds (TDF) - TDFs are named after the expected retirement year of the investor, such as 2045 or 2050, and are designed to automatically adjust asset allocation as the retirement date approaches [2][5]. - The core advantage of TDFs is their "one-stop" solution, which includes a "glide path" mechanism that reduces equity exposure as the investor ages, helping to mitigate common behavioral finance pitfalls [6][5]. - TDFs are suitable for novice investors or those who do not have the time to manage their accounts, as they provide a lifecycle solution without the need for active asset allocation [2][6]. Group 2: Target Risk Funds (TRF) - TRFs are named based on risk levels, such as conservative, balanced, or aggressive, allowing investors to choose funds based on their risk-return preferences [2][7]. - The investment strategy of TRFs maintains a constant risk level, with specific equity allocations, such as 30% for conservative products, making them suitable for investors with a clear understanding of their risk tolerance [8][7]. - TRFs require a higher level of self-discipline from investors, as market emotions can lead to misjudgments in risk tolerance, making them more appropriate for those who regularly assess their financial situation [9][8].