The main benefit of a lifestyle fund is that it takes into account both short-term and long-term goals. It also creates an investment mix that fits with your current situation while still allowing room for growth in the future. This type of portfolio offers diversification across different asset classes including stocks, bonds, real estate, commodities, cash investments, etc., which helps reduce risk by spreading out investments across multiple sectors. Additionally, because lifestyle funds are professionally managed they have lower fees associated with them than traditional mutual funds or ETFs (exchange-traded funds).
Another advantage of this kind of investing is that it gives you more control over how much risk you take. You can choose from several different strategies including conservative portfolios for those who want low volatility or more aggressive portfolios if you’re looking for higher returns but greater risks. In addition, these funds tend to be more tax efficient since they focus on capital gains rather than income taxes when distributing returns among investors.
Finally, if life changes occur such as getting married or having children then these changes can easily be taken into consideration with a lifestyle fund as opposed to other types of investments which require manual adjustments each time something changes in your life circumstances.
Overall lifestyle funds offer many advantages over traditional investing strategies including professional management at lower fees than most mutual funds and ETFs along with increased control over risk levels and tax efficiency when distributing returns among investors as well as providing flexibility should life change occur at any point in time during the investment period. If you’re interested in exploring this type of investing strategy then it’s important to do some research before getting started so that you understand what options are available and how they fit with your individual needs and goals!