Investment

Glide Path

A glide path is a predetermined, systematic shift in an investment portfolio's asset allocation—typically becoming more conservative over time—commonly used in target-date or lifecycle funds to reduce risk as a specific date (such as retirement) approaches.

Quick answer: A glide path is a predetermined, systematic shift in an investment portfolio's asset allocation—typically becoming more conservative over time—commonly used in target-date or lifecycle funds to reduce risk as a specific date (such as retirement) approaches.

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Quick answer

A glide path is a predetermined, systematic shift in an investment portfolio's asset allocation—typically becoming more conservative over time—commonly used in target-date or lifecycle funds to reduce risk as a specific date (such as retirement) approaches.

Why it matters

Glide Path matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Glide Path?

In this glossary, Glide Path refers to: A glide path is a predetermined, systematic shift in an investment portfolio's asset allocation—typically becoming more conservative over time—commonly used in target-date or lifecycle funds to reduce risk as a specific date (such as retirement) approaches.

How is Glide Path used in finance?

In finance communication, this term appears in contexts such as: "Un fondo de fecha objetivo ajusta automáticamente la asignación de activos conforme a su glide path, reduciendo la exposición a renta variable al acercarse la fecha objetivo."

Why does Glide Path matter in finance?

Glide Path matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Glide Path?

Glide Path is mainly used by Financial Analysts, Bankers, and Traders.

What category does Glide Path belong to?

In this glossary, Glide Path is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

A glide path is a predetermined, systematic shift in an investment portfolio's asset allocation—typically becoming more conservative over time—commonly used in target-date or lifecycle funds to reduce risk as a specific date (such as retirement) approaches.

Operational example

A target-date fund automatically adjusts its asset allocation in line with its glide path, reducing equity exposure as the target date nears.

Localized term

Glide Path

Localized example

Un fondo de fecha objetivo ajusta automáticamente la asignación de activos conforme a su glide path, reduciendo la exposición a renta variable al acercarse la fecha objetivo.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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