Fidelity cuts fees for college savings plans

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Fidelity Investments is delivering new choices to investors while trimming fees on college savings plan portfolios as part of a suite of changes the firm has been making to lower expenses and make investing easier.

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On Tuesday, the one of the largest and most diversified global financial services firms announced new choices and values for investors in its college savings plans with the launch of eight 529 Blend portfolios. The portfolios will combine active and index investments which became available to investors beginning on Oct. 3. The firm also announced it is trimming fees on 15 of its 22 college savings plan portfolios.


Fidelity 529 Blend age-based portfolios, according to the company, will invest assets in a combination of underlying index and active funds with similar investment objectives compared to the pre exisitng Fidelity actively-managed and Fidelity index 529 age-based portfolios.

As of Oct. 1, the firm reduced fees for the majority of its 529 Plan portfolios, which is expected to save current investors more than $4 million annually, according to the company announcement.


“Saving for education costs is one of the largest financial challenges many families face. At Fidelity, we continue to look for new ways to provide investors with a broad range of innovative investment choices and exceptional value to help them meet their financial goals,” said Eric Kaplan, head of Target-Date and 529 Product at Fidelity Investments. “We designed the Fidelity Blend 529 portfolios to combine the advantages of active management with the lower cost of index investing. Additionally, we’re lowering fees on the majority of our 529 portfolios because we’re committed to do even more to help those who choose to invest their college savings with us.”

Fidelity has been privately held for more than 70 years and has $7.8 trillion in total client assets and $2.8 trillion in managed assets.


The company focuses on the “unique needs of a diverse set of customers” in helping more than 30 million people invest their own life savings, according to the company who added they assist 22,000 businesses manage employee benefit programs, as well as providing more than 13,500 financial advisory firms with investment and technology solutions to invest their own clients’ money.

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