About RCKTX
American Funds 2040 Target Date Retirement Fund Class R-3 is a diversified mutual fund designed for individuals planning to retire around the year 2040. Its primary purpose is to provide a single, professionally managed investment solution that automatically adjusts its asset allocation over time. Early in its lifecycle, the fund allocates a greater portion of assets to growth-oriented investments, such as U.S. and international equities, with the objective of capital appreciation. As the target retirement date approaches, the fund gradually shifts toward a more conservative mix by increasing exposure to fixed income, equity-income, and balanced funds. This glide path strategy aims to balance long-term growth with income generation and capital preservation as investors near and enter retirement.
Managed by Capital Research and Management Company, one of the oldest and largest investment firms in the U.S., the fund invests in a cross-section of underlying American Funds, spanning various asset classes and sectors. This diversified approach helps reduce the impact of market volatility while seeking attractive risk-adjusted returns. The fund plays a prominent role in employer-sponsored retirement plans and individual retirement portfolios, offering convenience and professional oversight for retirement investors seeking a streamlined, adaptive investment approach.
Fund Family Capital Group
Category Target-Date 2040
Performance Rating High
Risk Rating Below Average
Stock Exchange NASDAQ
Ticker Symbol RCKTX
Share Class Class R-3
Index S&P Target Date 2040 TR
RCKTX had a total return of 16.89% in the past year, including dividends. Since the fund's
inception, the average annual return has been 11.52%.
