Excerpt: Variables that must be considered include: the track record of the overall fund group, the stability of management, the method of allocating assets, a fund's expenses and the characteristics of the individual mutual funds that make up the target date fund's portfolio. 'Their asset allocations differ as well as the glide paths,' says Morningstar analyst Greg Carlson. 'Some funds are more aggressive early on, while others may be more aggressive in later years.' Carlson says that funds use similar methods to allocate assets. They consider the mean variance approach, based on the correlation among investments, expected rates of return, economic trends and stock and bond fundamentals.

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