NEW YORK (TheStreet) -- Volatility has been the name of the game in 2015, and according to Tom Nelson, portfolio manager for the Franklin LifeSmart Retirement Target Funds, the volatility is likely to persist for the remainder of the year. 

Target-date funds, which are structured in a way that balances risk in accordance to investors' predicted retirement dates, should help keep investors cool during tough times, thanks to the funds' diversification. 

The diversity across different assets, sectors and regions aids investors in staying the course "through thick and thin," Nelson said. It keeps investors in the market. 


Franklin LifeSmart 2020 Retirement Target Fund FRTSX data by YCharts

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One of the assets that Nelson and other portfolio managers use to diversify their holdings are bonds, which have continued to march higher despite speculation that interest rates will rise. 

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That speculation has gone on for months on end, as many experts and economists expected a rate hike from the Federal Reserve in 2014, which never came to fruition. 

Nelson says investors should expect to earn less yield on their investment sand be aware that chasing higher yields can become a dangerous endeavor. 

He expects the Fed to hike rates sometime this year. 

Nelson says there are several different kinds of target-date funds, including those that aim to invest "through" or past the selected retirement date, and those that aim to invest "to retirement" and not past the selected date.

Franklin LifeSmart is a "to retirement" fund, and so it tends to have a more conservative approach, while "through" retirement funds tend to be a bit more aggressive because they have more time, he explained. 

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This article is commentary by an independent contributor.