Target date funds' net sales could reach more than five times those of target risk funds' in the next four years.

That prediction comes from Financial Research Corporation in the wake of its recently released 1Q07 Lifecycle Funds Report (read "Where Are the Target Date and Target Risk Assets Flowing?" on our sister publication, The 401kWire). And while target risk funds currently hold more assets than target date funds, the Boston-based BISYS unit projects that by 2011 target date funds will nearly quintuple, holding almost $160 billion more than target risk ones.

According to FRC, as of the end of 2006 target date funds held $114.8 billion and target risk funds held $188.5 billion. Net sales in 2006 hit $34.4 billion for target date funds and $23.7 billion for target risk funds.

By the end of 2011, FRC's updated projections see target date assets reaching $567.5 billion, with annual net sales of $80.1 billion.

In contrast, the fund research firm anticipates a drop in target risk fund net sales to $15.9 billion in 2011. However, FRC still sees target risk assets more than doubling by the end of 2011, hitting $409.9 billion. 

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