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The target date fund market shows explosive growth, with over $250 billion in assets

Morningstar has noticed an explosive growth in the target date fund market. Despite some negative attention from Capitol Hill and the financial media, it is clear that investors are comfortable with using target date funds as a retirement investment vehicle. At the end of 2009, the 15 largest fund companies had over $255 billion in assets in target date funds. With such rapid growth, participants will benefit from accurate personalized projections that properly account for a target date fund glide path.

“Net assets in target-date mutual funds at the 15 largest fund companies have grown to nearly $256.5 billion at the end of 2009, according to statistics published by Morningstar.”