For most people, these investment options include a mix of different funds that track the performance of different market sectors. For example, a 401(k) may offer large-cap, mid-cap, and small-cap funds that give you exposure to large, mid-sized, and small companies. Or it may offer a fund that gives you exposure to the U.S. market as a whole, to emerging markets, or to bonds or real estate.
Many 401(k)s also offer target date funds. Target date funds aim to simplify the investing process by automatically investing your money in an appropriate mix of different kinds of assets depending on your investing timeline and your risk tolerance.
If after checking with your employer to see what investments your 401(k) offers, you find that you have access to fewer investments than the average, there’s a chance you may be unhappy with the investment selection. And, in some cases, even if your plan offers the typical 15.4 investments — or more — you may still be dissatisfied.