THE introduction of life-cycle investment products through the Central Provident Fund New Investment Scheme in 2028 will give more members access to professionally managed portfolios that de-risk over time as retirement approaches, a concept known as glide path.

This is an important development. It also raises a question that investors should ask: What actually changes inside the portfolio as it moves along the glide path?

A target-date strategy is often described by how the allocation between equities and fixed income changes over time: More equities when retirement is far away, followed by a gradual shift towards bonds.