What kind of product is a target-conversion fund?

A target-conversion fund raises money for a set period and invests it in risky assets such as stocks; once a predetermined target return is reached, it switches to safe assets such as bonds and is managed that way until maturity.

The target return is not a fixed, promised return, so reaching the target may be delayed or may not happen at all, and the actual return after conversion may fall short of the target. Because maturity may be shortened once the target is reached, check the structure and risks in the prospectus.