In theory, all-in-one funds are meant to be an investor’s only holding. However, many people own other investments as well. For example, you may own a target-date fund in your 401(k) and other investments in your IRA. In this case, it’s important to look at the asset allocation and diversification of your portfolio as a whole. Asset allocation and diversification are widely accepted methods to help manage investment risk; they do not guarantee a profit or protect against investment loss.