On the Use of Equities in Target Date Funds

Is it possible to achieve almost riskless investment results in the long run through equity investments? The persistence of low interest rates is spurring research on this question, because of the need to increase yields, while limiting variability of investment results. Target date funds aim to achieve an almost riskless outcome over a long horizon. They can be managed as contingent claims when expressed as units of a stock index. To assess the robustness of target date funds we introduce a simple overfunding scheme and show its reliability through bootstrapping.