The Massachusetts U.Fund 529 College Investing Plan earned Morningstar's 2023 Silver Medal, joining the ranks of the highest-rated in the country.
"Investors in what Morningstar analysts consider the best 529 plans should be well-positioned for the future," stated Morningstar, Inc., a provider of independent investment insights in North America, Europe, Australia, and Asia. "With the right 529 plan, a family can effectively save for the future so that money is less of an obstacle in the beneficiary's education journey."
Morningstar annually ranks 529 education savings plans based upon each plan's investment merits compared to other plans.
The U.Fund received an upgrade from Bronze to Silver "thanks to its longstanding and highly involved college savings leadership team that receives support from additional stakeholders like the board of directors, college planning team, and external consultants," reported Morningstar. "The leadership team has overseen the plan together since 2002 providing exemplary oversight."
"At MEFA, we're proud of the U.Fund and the opportunity it provides families to save for future education expenses. We encourage families to set aside what they can, when they can, and have confidence that the U.Fund is a strong education savings option for them," said Thomas Graf, Executive Director of MEFA
The U.Fund upgrade can be attributed to "a combination of increased confidence in Fidelity's team and state oversight that exceeds industry standards," according to the Morningstar report. The analysts praised Fidelity's "experienced management team, robust asset-allocation resources, and stable of well-regarded underlying funds."
"By prioritizing financial mobility across everything we do, we're ensuring a brighter future for the next generation and for people of all backgrounds," said Tony Durkan, vice president, head of 529 relationship management at Fidelity Investments. "Fidelity is committed to removing barriers to education and we're proud to work together with MEFA to offer the U.Fund to make education more accessible."
The U.Fund is a tax-advantaged investment plan, offered by MEFA and managed by Fidelity Investments. It offers state and federal tax benefits, including a state tax deduction, and provides many investment choices. The accumulated funds can be used for a wide range of education expenses. The U.Fund manages $8.8 billion in assets for over 271,000 account holders.
For more information about the U.Fund and college savings, visit mefa.org/ufund.
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