A targeted maturity fund is typically designed for people who plan to retire in or near a specific year, and that "target" year is often part of the fund's name -- for example, " XYZ Targeted Retirement 2025" would be designed for people who plan to retire in or near 2025. A targeted maturity fund typically invests in several other mutual funds offered by same fund family (for example, XYZ Targeted Retirement 2025 might invest in two stock funds and two fixed-income funds sponsored by the XYZ fund family). As the target year approaches, a targeted maturity fund typically adjusts its allocation in the underlying funds, gradually becoming more "conservative" (i.e., periodically increasing its allocation to the underlying fixed-income funds, and decreasing its allocation to the underlying equity funds).