About RDHTX
The American Funds 2045 Target Date Retirement Fund R-4 is a mutual fund tailored for individuals planning to retire around the year 2045. Its primary function is to provide a diversified, professionally managed portfolio that evolves over time to align with investors’ changing retirement needs. The fund employs a 'glide path' strategy: initially, it emphasizes growth by investing heavily in equities, seeking capital appreciation in the earlier years. As the target retirement date approaches, the fund gradually shifts its allocation toward fixed income, equity-income, and balanced funds, aiming to reduce risk and increase income and capital preservation.
Notably, the portfolio comprises a selection of underlying American Funds, spanning domestic and international equities, balanced, and bond funds, thereby offering broad diversification across sectors and geographies. The fund maintains a relatively low expense ratio and low turnover, which can help minimize costs for long-term investors. Managed by Capital Research and Management Company, a firm with decades of experience in retirement solutions, the American Funds 2045 Target Date Retirement Fund R-4 plays a significant role in workplace retirement plans and personal retirement savings strategies by offering a "set it and monitor" approach to retirement investing.
Fund Family Capital Group
Category Target-Date 2045
Performance Rating Above Average
Risk Rating Below Average
Stock Exchange NASDAQ
Ticker Symbol RDHTX
Share Class Class R-4
Index S&P Target Date 2045 TR
RDHTX had a total return of 18.28% in the past year, including dividends.
Since the fund's inception, the average annual return has been 8.62%.
