Are LifeCycle Funds good funds to invest in?

They are if you are Paris Hilton and too busy to bother with an annual review of your assets or unable to understand diversification. It's an expensive way to perform marginally. If you are someone who just wants auto pilot and to never think about investments it's not a bad idea. It's another product for the masses because it gives you a false sense of something being done that you can't do yourself.

For a lot of people, yes.

Lifecycle funds are designed for long term investing. They are most frequently used for retirement saving. Basically, long term investing involves allocating your money into a diversified portfolio of stocks and bonds. When you are young, the portfolio should be mostly invested in stocks. As you grow older and get closer to retirement, you should gradually reduce the proportion invested in stocks and increase the amount invested in more stable investments like bonds and money market funds. That's because you want to lock in investment gains the closer you get to retirement, and investing in bonds and money market funds tends to protect gains.

The financial advisers who manage lifecycle funds do all this investment strategizing for you. They allocate your money into a diversified portfolio that's suitable for someone your age. Then, as you grow older, they gradually shift some of the portfolio's assets out of stocks and into bonds and money market funds. Even when you're retired, they'll keep some money invested in stocks as protection against inflation.

So lifecycle funds are a very good choice for people who don't know much about investing and don't have the time or inclination to learn. For more information, go to the webpages listed below.