They are the extreme of the more-funds trend. Most brokerage accounts permit employees to trade virtually any U.S. stock, bond or mutual fund. In both cases, employees pay additional fees. These are for employees who don't want to deal with investment decisions. The funds are blends of stocks and bonds.
Employees pick one based on their investment goals and ability to tolerate risk.
Some companies resist offering a lot of funds because they fear employees will become confused. Lifecycle funds generally are on the basic tier. Next, come six or seven funds from which employees can build their own diversified portfolios. The funds often have generic names, such as diversified stock fund. Finally are mutual fund windows or brokerage accounts.