When Target-Date Funds Miss the Mark

On the surface, so-called target-date mutual funds sound like a great idea. You name the date you plan to retire and select the appropriate fund.

That, in theory, is your only decision. Just invest regularly in that one fund, and it does all the rest -- magically rebalancing itself until retirement day.

So much for theory.

In practice, these retirement funds aren't always what they seem. You may believe you're getting a "one-decision" fund. But because no two funds are alike, it's hard to know what's been decided. Fund companies have been rolling out a greater number of target-date mutual funds lately, with many of them ending up in 401(k) plans. ...