Description

The Vanguard Target Retirement 2020 Fund Accumulation Shares is a collective investment scheme designed to provide capital appreciation and current income for investors who retired or planned to retire around the year 2020. This fund operates as a target-date fund, investing in a diversified mix of underlying Vanguard mutual funds. Its investment strategy involves a gradual shift to a more conservative asset allocation over time, reducing exposure to higher-risk assets like stocks and increasing allocation to lower-risk fixed income investments as it progresses past its target retirement date. Within approximately seven years after 2020, the fund's asset allocation is expected to align with that of the Target Retirement Income Fund, typically comprising a higher proportion of bonds to shares. The fund is designed for individuals seeking a professionally managed, diversified portfolio that automatically adjusts its risk profile to suit those in or near retirement. As an accumulation share class, income received from the fund's investments is typically reinvested rather than distributed.