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This allows us to have consistent, accurate, and comparable data across the Funds.
Some Funds release their data on the last day of the quarter while others may take up to 2-4 weeks to fully make their numbers available.
Sites differ greatly in terms how often they update their information. We gather the data quarterly to have a common comparison point between the funds. Of course, the data may be updated/more recent when you visit.
Also note that in the vast majority of cases we publish the data directly as stated by the Plan. In a very small number of situations, the plan/fund doesn’t publish the number directly but has enough information for the relevant number (e.g. 3 Year return) to be calculated.
For advisor-sold funds or funds with sales loads/share classes, the performance data is usually shown for Class “A” shares that do not include the effects of Sales/loads/One-time charges. So, the returns shown for these funds usually reflect the BEST return you would get in that fund. Class B&C shares have lower performance numbers. In a very small number of cases, the only data available includes the effects of the sales loads on the Class “A” shares, so this is provided.
For No-Load funds (mostly direct sold funds), the data is presented as reported.
We do not show the results for more than one share class per fund (e.g. A, B, C etc). You may obtain this information directly from the Funds website (click on the Fund on the “Plans” page).
| Starting Amount | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| $1,000 | 10% ($1,100) | 20% ($1,320) | 15% ($1,518) |
Restating this under the equivalent “Average Annual Return” metric of 14.927% (rounded), would look like this:
| Starting Amount | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| $1,000 | 14.927% ($1,149.27) | 14.927% ($1,320.83) | 14.927% ($1,518) |
Non Age based Funds
For Non-Age based funds, the following table illustrates the criteria used:
| Fund Style | General Fund Attributes |
|---|---|
Index | The fund is mirroring the S&P500 Index. Note that funds mirroring other index (e.g. entire stock market etc) are classified into the other categories due to the small number of funds with these goals. |
Bond | The fund invests in at least 75% Bonds or derivative products. |
Ultra Conservative | The fund invests in Money Market, Fixed Income, or income generating assets. |
Conservative | The fund invests in a portfolio of assets designed to minimize risk while still investing in stocks. |
Moderate | The fund uses a balanced approach to investing across stock or other asset categories and assumes an average amount of rsk. This is the default category. |
Aggressive | The fund invests highly in growth stocks or risky investment vehicles. |
Value | The funds managers invest in what they deem to be “value” stocks. These are stocks that the manager feels are undervalued by the market. |
International | The fund primarily invests in international investments. |
Age Based Funds
Generally, Age-Based funds come in two types. Funds based on the year a child is born and funds based on the specific age of the child.
Funds that are based on a child’s year-of-birth change their investment composition over the years to adjust risk/return to match the child’s age. In essence, the fund investing style changes as the years pass. For these funds, we will change the funds style as appropriate each year. Due to the fact that the investing style changes, longer term history performance for these funds is less meaningful in evaluating the funds performance against other non-birth-year funds. One and Three year data provides the fairest comparison across funds of this type with others.
Funds that are based on the age of the child come in fund “family’s” that are related. In these funds, your money is transferred to the age-specific fund as your child grows. For these funds, the longer term history data also provides for a meaningful comparison across other funds.
We use the following table to determine the funds style that we use in the ratings data for an individual fund within our site. This is done to support as fair a comparison as possible across all funds.
The table depicts the two main factors used to classify a funds style for the 529Ratings.com website. The first is the age of the child and the second is the overall style of the fund or fund family as determined by its published documentation. In cases where the documentation was not specific, the “Moderate/Unspecified” factor value was used.
Most of the funds or fund family’s fall into the “Moderate/Unspecified” column. However, certain funds or fund family’s are targeted to be more conservative or aggressive than normal.
| Age | Conservative | Moderate/Unspecified | Aggressive |
|---|---|---|---|
| 0-3 | Moderate | Aggressive | Aggressive |
| 4-6 | Moderate | Aggressive | Aggressive |
| 7-9 | Conservative | Moderate | Aggressive |
| 10-12 | Conservative | Moderate | Aggressive |
| 13-15 | Conservative | Conservative | Moderate |
| 16-18 | Conservative | Conservative | Moderate |
| Adult | Conservative | Conservative | Conservative |
So, a normal age-based fund for 7-9 year olds will have a style of “Moderate”. The fund within the same fund family that is for children ages 0-2, will have a style of “Aggressive”.
If a particular fund is for kids within an age-range and that range overlaps two age-categories, its classification is made based on which category the ages overlap with the most (e.g. Fund “A” is in a moderate family, whose ages span 12-14, this fund would be classified as having a “conservative” style). If it overlaps both age-categories, equally, the “’riskier” style will be assigned (e.g. Fund “B” is a “Conservative” Family fund for kids 5-8. This fund will be assigned a “Moderate” style).
