Which type of fund has a maturity date and typically involves a glide path?

Target-date funds are designed with a specific maturity date, typically aligned with a future date when an investor plans to retire or achieve a particular financial goal. They are structured to gradually shift their asset allocation from higher-risk investments to more conservative ones as the target date approaches. This strategic shift is known as a "glide path" and allows the fund to decrease risk over time while aiming to meet the investor’s long-term objectives.

The concept of a glide path is an essential characteristic of target-date funds, effectively providing a systematic approach to risk management and capital preservation as the investor gets closer to their retirement date or financial goal. This makes them appealing to investors who are looking for a hands-off investment option that adjusts according to their timeline.

Other fund types, like short-term bond funds or private placements, do not have a defined maturity date or follow a glide path to manage risk over time. Short-term bond funds focus on fixed income securities with shorter durations and do not shift allocation based on a timeline. Private placements are offerings of securities that are not available to the general public and do not conform to the glide path concept. Fund wraps typically involve a combination of investment strategies but lack a maturity date associated with a glide path design.