College Planning
Investment Options

Fidelity offers a wide range of investment options for your 529 College Savings Plan account. To simplify the choice, and determine what is best for you, ask yourself two questions:

  • Do I want a portfolio that automatically becomes more conservatively invested as the beneficiary nears college age? If yes consider choosing the Age-Based Strategy. Or, do I want to customize my investments? If yes, then consider choosing the Custom Strategy.
  • Once I've decided that, do I want a portfolio of funds Actively-Managed by a portfolio manager, or a portfolio of funds that are tied to a specific index?

The information below gives more information about these options:

Contact Us

Open a 529 Account

Age-Based Strategy

The Age-Based Strategy is based on the beneficiary's age. These Portfolios start out with a greater allocation of equity investments for younger beneficiaries with many years to go before college. As the beneficiary gets older and nears college age, the investments in the portfolio are automatically reallocated to become more conservative. These more conservative holdings come at the time when it is expected the investment will be used to pay for qualified higher education expenses.

Chart depicting Asset Allocations for Age-Based Portfolios as of December 31, 2009. The target asset allocation mix changes from more aggressive to more conservative as the child nears college age. Portfolio 2027 is for children born between 2008 to 2010. It allocates 12% of assets to Bonds and 88% of assets to equities. Portfolio 2024 is for children born between 2005 to 2007. It allocates 18% of assets to bonds and 82% of assets to equities. Portfolio 2021 is for children born between 2002 to 2004. It allocates 1% of assets to short-term investments, 28% of assets to bonds and 71% of assets to equities. Portfolio 2018 is for children born between 1999 to 2001. It allocates 7% of assets to short-term investments, 36% of assets to bonds, and 58% of assets to equities. Portfolio 2015 is for children born between 1996 to 1998. It allocates 14% of assets to short-term investments, 42% of assets to bonds, and 44% of assets to equities. Portfolio 2012 is for children born between 1993 to 1995. It allocates 23% of assets to short-term investments, 45% of assets to bonds, and 33% of assets to equities. Portfolio 2009 is for children born between 1990 to 1992. It allocates 36% of assets to short-term investments, 40% of assets to bonds, and 23% of assets to equities. The College Portfolio is for students born in 1989 or earlier. It allocates 40% of assets to short-term investments, 40% of assets to bonds, and 20% of assets to equities.

Fidelity offers two types of portfolios for it's Age-Based Strategy: a portfolio of actively-managed funds, and one that invests in Index funds.

  • Age-Based Portfolios (Actively-Managed Funds) are designed to generate returns that attempt to beat a major market index over the long term. These portfolios invest in funds that are managed dedicated portfolio managers who are making investment decisions backed by Fidelity's proprietary investment research.
  • Age-Based Portfolios (Index Funds) are designed to generate returns that closely mirror the performance of a major market index over the long term. These portfolios are able to keep transaction costs and other expenses low because they are passively managed, meaning that the securities currently held in the index determine your investments - not a portfolio manager.

Which portfolio will I be invested in?
If your child was born in: Your Age-Based Portfolio (Actively-Manged Funds) will be: Your Age-Based Portfolio (Index Funds) will be:
2008-2010 Portfolio 2027 Portfolio 2027 (Index)
2005-2007 Portfolio 2024 Portfolio 2024 (Index)
2002-2004 Portfolio 2021 Portfolio 2021 (Index)
1999-2001 Portfolio 2018 Portfolio 2018 (Index)
1996-1998 Portfolio 2015 Portfolio 2015 (Index)
1993-1995 Portfolio 2012 Portfolio 2012 (Index)
1990-1992 Portfolio 2009 Portfolio 2009 (Index)
Before 1989 College Portfolio College Portfolio (Index)
This chart assumes the child will begin attending college at approximately 18 years of age.

Custom Strategy

For some investors, the established asset allocations of the Age-Based Portfolios may not offer their preferred asset mix. To help you invest the way you prefer, Fidelity offers several Static Portfolios and Individual Fund Portfolios.

Static Portfolios which include portfolios that invest in actively-managed and index funds, have an asset allocation that doesn't change over time. Individual Fund Portfolios include several index fund options as well as a Money Market fund option.

Similar to the Age-Based Strategy, you can select from either Actively Managed options or index fund options within the Custom Strategy (see above for explanation of difference).

  Portfolios
(Actively-Managed Funds)		 Portfolios
(Index Funds)
Static Portfolios 100% Equity 100% Equity (Index)
70% Equity 70% Equity (Index)
Conservative Conservative (Index)
Individual Fund Portfolios Money Market Portfolio (Cash Reserves) Spartan 500 Index
Total Market Index
International Index
Intermediate Treasury Index
Social Choice Portfolio
(available in CA plan only)

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 UNIQUE College Investing Plan, U.Fund College Investing Plan, Delaware College Investment Plan, Fidelity Arizona College Savings Plan, and ScholarShare® College Savings Plan are offered by the State of New Hampshire, MEFA, the State of Delaware, the Arizona Commission for Postsecondary Education, and the ScholarShare Investment Board, an agency of the State of California, respectively, and managed by Fidelity. If you or the designated beneficiary are not a New Hampshire, Massachusetts, Delaware, Arizona, or California resident, you may want to consider, before investing, whether your 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.
Copyright 1998–2009 FMR LLC
All rights reserved.
Terms of Use Privacy Security Site Map