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Target Portfolios
Your investments remain constant.
The Target Portfolios divide assets among equity (stock), fixed income (bond), and money market/bank account investments. Your investment professional can help you assess your risk comfort level and choose from seven portfolio options ranging from aggressive to conservative. Your portfolio will be rebalanced on an ongoing basis to maintain the targeted asset allocation. Unlike the Age-Based Portfolios, the Target Portfolios do not adjust their asset allocation based on the age of the beneficiary.
Investment Options
Target
The most aggressive Target Portfolio (Fund 100) is composed primarily of equity mutual funds (domestic, international, and real estate). The most conservative portfolio (Fixed Income Fund) is composed of fixed income and money market/bank account.
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.F
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.
