Vanguard

							1. Target Retirement Funds offered by Vanguard can be very helpful and dependable
   investment option for 401 k plan participants, for the following reasons:
      Low cost investing: Unlike other such funds Vanguard distributes its funds directly to
       its customers, therefore offers no-load funds with the lowest 0.21% expense ratio
       among its competitors, the only fund fee the investors pay. Vanguard maintains cost
       leadership first because majority of TRFs are index funds which do not require costly
       active management; second, it saves on advertisements, relying mainly on word of
       mouth. Further, 80% of its transactions are made through WEB also minimizing the
       costs.
      Simple one-stop investment option: It is very easy and convenient especially for 401k
       plan participants as they are designed for employees which seldom have time to
       manage portfolio themselves. So TRFs offer them just to invest money and do not
       care about it until the day of the retirement.
      Little risk due to high diversification, asset allocation adjustment and index funds.
       They invest in a mix of asset classes such as stocks, bonds, other funds including
       international, money market instruments etc. and use different allocation strategies
       based on age, investing heavily in bonds as the target date approaches.
While TRFs can be good option for risk adverse investors they cannot attract risk tolerant
ones. However, considering that high risk portfolios though promise high returns, they have
high investing costs which cannot be affordable for many 401k participants. So it can be
concluded that Vanguard’s TRF are very good option for them.



2. Whether High Net-Worth individuals should or should not invest in TRFs depends on
   their risk tolerance level. Those who are less risk tolerant can invest in such funds. But,
   those who are risk tolerant they are likely to make high-risk-return investments. Such as
   Venture Capital provision which will not only boost HNW investors’ returns but also will
   contribute to startups; or Hedge Funds, which are also mutual funds but unlike TRF they
   are highly expensive, risky but provide high returns to its investors.