Final answer:
The true statement is that the proportion of equities to fixed income products in Mischa's investment in the Halliwell Target Date Fund 2030 depends on the number of years left until the fund's maturity, a strategy designed to reduce risk as the target date approaches.
Step-by-step explanation:
When Mischa has invested in the Halliwell Target Date Fund 2030, she has chosen a mutual fund where the investment strategy involves adjusting the asset allocation between equities and fixed income products as the maturity date approaches. The goal is to progressively reduce risk as the investor nears retirement or the target date of 2030. This fund is part of a broader category of mutual funds that offer investors a diversified portfolio, with the convenience of having the fund managers adjust the equity to bond ratio over time. Notably, as of 2021, mutual funds have continued to be a popular investment choice, with just over 47% of U.S. households holding investments in mutual funds, often for retirement and pension savings.
Mutual funds come in many varieties, from those that focus on specific sectors or regions to broad index funds that attempt to mirror the overall market performance. However, a target date fund like Halliwell's specifically gears its investments to suit the changing risk tolerance of investors as they move closer to the fund's target date, often part of retirement planning. As such, the statement that the proportion depends on how many years are left until maturity is true, aligning with the common strategy of these types of funds.