Though the end goal is the same — to help pay for college — everyone’s investment strategy may not be the same and can even differ greatly based on unique circumstances, financial constraints, timelines, and overall savings goals. If you are looking for a 529 investment portfolio customized for your student’s expected enrollment year, you might want to choose an Enrollment Year Investment Portfolio. If you’re an experienced investor, you might choose a Multi-Fund or Single Fund Investment Portfolio you’ll review and change periodically. If your child is nearing college and you’ve been saving for a while, the Principal Plus Interest Portfolio might be the best choice. You may change your investment choices up to twice per calendar year or upon a change in beneficiary.
Enrollment Year Investment Portfolios
(options for Active, Passive, and ESG Investing)
This investment portfolio’s asset allocation depends on the date year when the student plans to pay for their qualified education expenses. The risk level automatically shifts from aggressive to conservative as the expected enrollment year approaches. You may select the Enrollment Year Investment Portfolio that corresponds to the student’s expected future year of enrollment, or a different one that best meets your specific investment objective.
Guaranteed Portfolio Option
This investment portfolio seeks to preserve capital and provide a stable return. These options may be good for shorter timeframes to save and for individuals who have lower risk tolerance.
Multi-Fund Investment Portfolios
These investment portfolios are for participants who prefer to select an investment portfolio for its specific asset allocation. Each Multi-Fund Investment Portfolio is allocated to multiple underlying funds and/or a funding agreement and has a different investment objective and investment strategy. The allocations in the Multi-Fund Investment Portfolios do not change automatically as the student ages as they do in the Enrollment Year Investment Portfolios.
Single Fund Investment Portfolios
These investment portfolios are each invested solely in either shares of a single underlying fund or a funding agreement. For those investment portfolios invested in an underlying fund, their performance is entirely reliant on the performance of that underlying fund and may be more volatile than the Enrollment Year Investment Portfolios or the Multi-Fund investment portfolios. You should be aware that participants do not own shares of the underlying funds directly. This option may be good for people who are interested in specific single funds such as equity index or social fund options.
The investment portfolios are subject to the risks of the underlying funds including the loss of principal.