VTINX (Vanguard retirement fund) as a medium term investment in a taxable brokerage account

Outside of my 401(k), I hold only cash and VT (technically VTWAX, but whatever).

I’m looking for creating a separate investment that I can use as a “capital improvements fund,” for lack of a better word: To fund large medium-term purchases that can theoretically wait out a market downturn, such as large home improvements or a car.

I contemplated just adding bonds to my existing holdings until I get to some desired mix, but I keep getting drawn to the siren call of VTINX: Vanguard’s retirement income fund.

I realize it’s designed for retirees, but its long term performance is right between VASIX (Vanguard’s income fund) and VSCGX (their conservative growth fund)… its long term historical growth is right between the two (about 5% vs 4%/6% for the other two) but its downside behavior (max 19% drawdown) is much closer to VASIX (17%) than VSCGX (29%). It also holds some short term TIPS as an inflation hedge and overall has a shorter bond duration (5y) than the other two funds (6y).

It kind of seems like a perfect “set it and forget it” fund that should outpace inflation while delivering pretty stable outcomes.

I realize that the dividends will be higher than VTWAX and will be taxable, but its should be no worse than a HYSA with a similar value, right?

Is there some sort of catch I’m missing as to why this fund shouldn’t be used for this reason?