A fund may invest in the shares of one or more other funds to achieve improved asset allocation, diversification, or other investment objectives. A fund that primarily invests in other funds, instead of directly investing in debt or equity securities of operating companies, is commonly called a fund of funds. It is important to know that if your fund owns shares of another fund, you are paying the fees and expenses of your fund and indirectly paying the fees and expenses of the underlying fund (listed as the Acquired Fund Fees and Expenses in your fund’s prospectus fee table). Target date funds, also known as lifecycle funds, are typically funds of funds.
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