New Delhi, Sept. 8 -- The closer an investment goal gets, the less room there is for a market shock-and that is where a glide path comes in.

A glide path is a plan for changing how money is invested as a target date approaches. Instead of holding a fixed mix of assets, the portfolio starts out tilted towards growth and gradually shifts towards stability. In investing, that typically means a high share of equity in the early years, when there is time to ride out volatility, followed by a gradual move into debt as the goal nears and the room for error shrinks.

The shift is predetermined and follows a schedule, rather than a hunch about where markets are headed.

This takes the rebalancing decision out of the investor's hands. The move fro...