529 Plan Investment Options

As you get ready to open your 529 plan account, decide which investment strategy will work best for you. Our plans offer options for every type of investor.

Our Age-Based Strategy includes portfolios that are managed according to the beneficiary's birth year with the asset allocation automatically becoming more conservative as the beneficiary nears college age.

Your beneficiary's birth year will help determine the Age-Based portfolio in which you'll invest.

This strategy offers a choice of three types of funds:

Fidelity Funds

  • Seek to beat a major market index over the long term
  • Portfolios invest solely in Fidelity funds
  • Managed by dedicated Fidelity portfolio managers

Multi-Firm Funds

  • Seek to beat a major market index over the long term
  • Portfolios invest across multiple fund companies, offering an opportunity to diversify your funds
  • Managed by dedicated Fidelity portfolio managers

Fidelity Index Funds

  • Seek to closely mirror the performance of a major market index over the long term
  • Portfolios invest solely in Fidelity Index funds
  • Passively managed; securities currently held in the respective index determine investments

Fidelity may use its proprietary asset allocation research to make active asset allocation decisions in the Age-Based portfolios that invest in Fidelity Funds and Multi-Firm Funds. Such active asset allocation decisions may better enable the portfolios to take advantage of short- to medium-term opportunities and market conditions. Although an active asset allocation strategy is designed to add value, there is no guarantee any value will be added, and the strategy may result in losses to the Portfolios. Please review a 529 plan fact kit for more information on Portfolio asset allocation.

Asset Allocation for Age-Based Portfolios

This chart is hypothetical and assumes the child will begin attending college at approximately 18 years of age. It illustrates the target mix that each Age-Based Portfolio has achieved on January 31, 2014. Percentages may not add up to 100% due to rounding.
Beneficiary
birth year
Portfolio* Asset allocation 
U.S. equity funds
Non-U.S. equity funds
Bond funds
Short-term funds
2014–2016 Portfolio 2033
63%
25%
12%
2011–2013 Portfolio 2030
62%
25%
13%
2008–2010 Portfolio 2027
57%
23%
20%
2005–2007 Portfolio 2024
49%
20%
29%
2
2002–2004 Portfolio 2021
40%
16%
37%
8
1999–2001 Portfolio 2018
30%
12%
41%
17%
1996–1998 Portfolio 2015
20%
7%
41%
32%
1995 and earlier College Portfolio
15%
5
40%
40%
* The Age-Based Fidelity Funds, Multi-Firm, and Fidelity Index portfolios take a more aggressive approach during the early years of saving for college to take advantage of potential growth opportunities, while investing to preserve capital as the need to pay for qualified higher education expenses approaches. Keep in mind that the investment risk of each Age-Based Portfolio changes along with the target asset allocation.

Asset Allocation for Age Based Portfolios

The chart assumes the child will begin attending college at approximately 18 years of age. It illustrates the target mix that each Age Based Portfolio would like to achieve by June 30, 2012. Percentages may not add up to 100% due to rounding.

The following lists the beneficiary birth year, corresponding age based portfolio*, and asset allocation.

  • Born 2011 to 2013, Portfolio 2030, U.S. Equity Funds 63%, Non U.S.. Equity Funds 26%, Bond Funds 12%.
  • Born 2008 to 2010, Portfolio 2027, U.S. Equity Funds 60%, Non U.S. Equity Funds 25%, Bond Funds 15%.
  • Born 2005 to 2007, Portfolio 2024, U.S. Equity Funds 54%, Non U.S. Equity Funds 22%, Bond Funds 25%.
  • Born 2002 to 2004, Portfolio 2021, U.S. Equity Funds 44%, Non U.S. Equity Funds 18%, Bond Funds 33%, Short term funds 5%.
  • Born 1999 to 2001, Portfolio 2018, U.S. Equity Funds 35%, Non U.S. Equity Funds 14%, Bond Funds 39%, Short term funds 12%.
  • Born 1996 to 1998, Portfolio 2015, U.S. Equity Funds 25%, Non U.S. Equity Funds 9%, Bond Funds 41%, Short term funds 24%.
  • Born 1993 to 1995, Portfolio 2012, U.S. Equity Funds 15%, Non U.S. Equity Funds 5%, Bond Funds 40%, Short term funds 40%.
  • Born 1992 and earlier, College Portfolio, U.S. Equity Funds 15%, Non U.S. Equity Funds 5%, Bond Funds 40%, Short term funds 40%.

* The Age Based Fidelity Funds, Multi Firm, and Fidelity Index portfolios take a more aggressive approach during the early years of saving for college to take advantage of potential growth opportunities, while investing to preserve capital as the need to pay for qualified higher education expenses approaches. Keep in mind that the investment risk of each Age Based Portfolio changes along with the target asset allocation.

Questions?

Call a college savings representative

800-544-2776

1Bank Deposit Portfolio is not an eligible investment selection for Trust Account Registrations.

2Although the underlying deposits are eligible for FDIC insurance, subject to applicable federal deposit insurance limits, the units of the Bank Deposit Portfolio are not insured or guaranteed by the FDIC or any other government agency. You are responsible for monitoring the total amount of your assets on deposit at the depository bank, including amounts held directly at the depository bank. All such deposits held in the same ownership capacity at the depository bank are subject to aggregation and to the current FDIC insurance coverage limitation of $250,000. Please see your 529 Fact Kit for more details.

The asset allocation strategy you choose for any Custom Strategy should be based on your investment objectives, risk tolerance, time horizon, and other factors you determine to be important. Different asset allocations offer different balances between risk and potential returns. Generally, the greater the stock allocation, the greater the potential for long-term returns and the greater the risk of volatility, especially over the short term. Conversely, the greater the allocation to bonds and/or short-term investments, the lower the potential for high long-term returns but the lower the short-term risks.

The U.Fund College Investing Plan is offered by MEFA and managed by Fidelity Investments. If you or the designated beneficiary is not a Massachusetts resident, you may want to consider, before investing, whether your state or the designated beneficiary's home state offers its residents a plan with alternate state tax advantages or other benefits.

Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation.

Please carefully consider each plan's investment objectives, risks, charges, and expenses before investing. For this and other information on any 529 college savings plan managed by Fidelity, contact Fidelity for a free Fact Kit, or view online. Read it carefully before you invest or send money.

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