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Investment Options

The Education Plan has a range of professionally managed investments available to meet your objectives. This gives your Education Plan account the flexibility to meet your investment needs.

An Overview of The Education Plan Investment Design

  • The Index Approach: An index — or passive — approach tries to mirror the performance of the industry benchmarks that the underlying funds are tracked against. This is distinguished from active investing, where portfolio managers make decision to buy or sell securities in the underlying funds.
  • The Blended Approach: The blended approach consists of a mixture of index funds and actively managed funds.
  • The Model Portfolios: The Education Plan has a number of model portfolios with different underlying funds. These are offered in both an Index form and a Blended form. The model portfolios provide a range of investment choices — from aggressive to conservative. In a model portfolio, the underlying funds and the percentages allocated to each of them are professionally preselected for you.

The Education Plan Offers Age-based Options as Well as More Customizable Options:

  • Age based Tracks: The Education Plan offers two Index Age-based tracks and two Blended Age-based tracks. These tracks utilize the model portfolios discussed above to invest your money based on your beneficiary's age. As your beneficiary gets older, your account is automatically invested in more conservative portfolios.
  • Custom Choice: This "do it yourself" option allows you to mix and match any combination of the 27 model portfolios that are available in the plan. Within this option, you can choose an index-only or blended-only strategy, or a mixture of the two.
  • Default Investment Option: Not comfortable selecting one of these options? During the enrollment process if you choose not to make an investment, your current and future contributions will be placed in the Index Balanced Age-based Track.

You are making a good choice in putting money away for your beneficiary's education. Learning about how your money can work for you is paramount to taking control of saving for this milestone.

Please call 1-877-337-5268 to speak with an education specialist if we can help you in any way.