Fixed Portfolio of 529 plans

2. Fixed Portfolio

Under a fixed portfolio strategy of 529 plans, you will select either a

• balanced 529 plan portfolio or

• aggressive 529 plan portfolio.

The asset allocation for a fixed 529 plan portfolio generally will remain the same over the life of the 529 plan college saving account.

You will also choose whether the mutual fund investing in the stock of large companies (a "large cap equity fund") included in the portfolio will be actively managed or passively managed (a "management style").

The fixed 529 plan portfolio strategy is responsive to the needs of those who place a high priority on minimizing risk or maximizing returns.

Which Strategy Is Right For you?

The 529 plan is designed to provide you with the ability to choose the investment strategy that's right for you.

The 529 plans usually offer different investment program strategies that are based upon your risk tolerance.

Aggressive:

The objective of an aggressive 529 portfolio is to provide long-term returns that have the potential to substantially exceed the historical rate of tuition inflation.

In attempting to achieve higher returns, the portfolio is likely to experience frequent and often large declines in value over short-term periods.

The aggressive portfolio is suitable for those who are:

• Willing to accept substantial volatility and achieve moderately high, long-term returns on their investments;
• Concerned with maximizing long-term investment returns. Therefore, willing to accept large and sometimes dramatic fluctuations in the value of their investments.

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