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Static Portfolios
Your investments remain constant.
The Static Portfolios divide assets among equity (stock), fixed income (bond), and bank deposit investments. Your investment professional can help you assess your risk comfort level and choose from four 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 Static Portfolios do not adjust their asset allocation based on the age of the beneficiary.
Investment Options
Static
The most aggressive Static Portfolio (Equity Portfolio) is composed primarily of equity mutual funds (domestic, international, and real assets). The most conservative portfolio (Fixed Income Portfolio) is composed of fixed income and bank deposits.
Stocks
Bonds
Cash
A word about risk: Keep in mind that you can lose money by investing in a portfolio. Each of the Age-Based, Enrollment Year, Static, 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 assets, have industry concentration risk. As an example, the portfolios that invest in real assets may perform poorly during a downturn in the real assets 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.
