Investments

Customize your approach to saving

Investments 2017-04-21T09:00:04+00:00

When you invest with Bright Directions, you get access to these quality fund managers.

BD_Logo-Farm_1024x800

Work with your investment professional to familiarize yourself with our different investment approaches and select the one that’s right for you: Age-Based, Target, or Individual Fund Portfolios. And if you’d like to rebalance your portfolio each year, don’t worry. The IRS allows an account owner to change the investment portfolio twice per calendar year or upon a change of beneficiary.

Age-Based Portfolios

Overview: The professionally designed Age-Based Portfolios focus your investment strategy on the current age of the beneficiary. The objective is to create growth potential in the early years and reduce fluctuations in the account as college approaches. You choose the option (aggressive, moderate, or conservative) that matches your investing style.

Investor Profile: Age-Based Portfolios are best for college savers who are looking for an investment portfolio that automatically adjusts over time as the beneficiary gets closer to college age.

Target Portfolios

Overview: These seven diversified investment portfolios, ranging from aggressive to conservative, provide a set asset allocation of equity (stock), fixed income (bond), and money market investments. The portfolio you select will be rebalanced on an ongoing basis to maintain the targeted asset allocation regardless of the age of the beneficiary.

Investor Profile: Target Portfolios are designed for college savers who want a mix of stocks, bonds, real estate, and/or money market investments that keeps the same asset allocation over time.

Individual Fund Portfolios

Overview: The more than 30 Individual Fund Portfolios, representing multiple asset classes, allow you the freedom to tailor your choices to meet specific education investment goals. Working with your financial professional, you select a combination of individual funds that range from lower risk/lower return to higher risk/higher return investment options.

Investor Profile: Individual Fund Portfolios are offered for college savers who are utilizing the expertise of their financial advisor to customize their investment strategy.

Portfolios for Registered Investment Advisors (RIAs)

Overview: Bright Directions offers even more choice and flexibility for RIAs and fee-only planners under Fee Structure F. To supplement the Individual Fund Portfolios, the program also offers 15 portfolios with exchange-traded funds as the underlying investment. More choice, more diversity, more flexibility—Bright Directions is a one-stop shop for all your 529 investing needs.

Investor Profile: The Individual Fund Portfolios, including the new ETF Portfolios, provide clients working with their registered investment advisor or fee-only planner the ultimate flexibility and choice with additional low-cost portfolios investing in Vanguard ETFs.

A Word About Risk: Keep in mind that you can lose money by investing in a portfolio. Each of the Age-Based, Target, and Individual Fund Portfolios involves investment risks, which are described in the Program Disclosure Statement and should be considered before investing. For example, international investing, especially in emerging markets, has additional risks such as currency fluctuation, economic and political risks, and market volatility. Investing in small, medium, and international companies may increase the risk of fluctuations in the value of your investment and involves greater risks than investing in more established companies. Portfolios that invest in specific industries or sectors, such as real estate, have industry concentration risk. As an example, the portfolios that invest in real estate may perform poorly during a downturn in the real estate industry.

Portfolios that invest in bonds are subject to risks such as interest rate risk, credit risk, and inflation risk. In particular, as interest rates rise, the prices of bonds will generally fall, which can impact performance. It is important to note that the value of your account will fluctuate with market conditions. When you withdraw funds, you may have more or less than your actual investment. For more information on the portfolios and the underlying funds in which they invest, see the Program Disclosure Statement.