Investment funds will be offered to satisfy three different approaches to investment decision-making. Investment options will be categorized in a manner that guides employees through the investment decision-making process. Employees first select a path that is appropriate for them given their:
- Investment knowledge
- Time for managing their own investment portfolios
- Tolerance for risk
Investment options are then tailored to meet employees' needs. For example, an investor who lacks the time for managing their own investment portfolios or a novice investor who is uncomfortable making asset allocation decisions and selecting funds, may select a fund comprised of a pre-mixed asset allocation.
Employees may decide to select funds from any or all of the tiers, though it is hoped the tiered approach guides employees toward investments that best meet their needs.