American Funds College Target Date Series | Capital Group

American Funds College Target Date Series®

Our seven target date funds were designed to address the key challenges of saving for the rising cost of education. A single investment provides diversification and a glide path matched to your intended college enrollment date, making saving for college easier than ever.

Features and Benefits

  • Convenience — Our target date funds provide diversification in a single, easy-to-use, low-cost investment.
  • Designed for educational savings —The funds are designed specifically for educational savings, with two needs in mind:
    1. Keeping pace with, if not exceeding, the rising cost of education.
    2. Preserving capital as the enrollment date approaches.
  • Automatic asset reallocation —Each fund’s portfolio becomes heavily oriented toward bonds as the expected target enrollment date nears, and grows even more preservation-oriented when the date arrives.
  • Time-tested American Funds investments —The American Funds College Target Date Series is the only 529 college savings plan target date option to solely feature American Funds.
  • Experienced oversight —Members of the Target Date Solutions Committee monitor the Series, reviewing results and asset allocations to keep them aligned with each fund’s time horizon.

The Glide Path

A glide path aligned with your college savings needs

  • We offer seven target date funds in three-year increments. The target date is the year that corresponds roughly to the year the beneficiary will start withdrawing funds to meet education expenses.
  • Our target date funds are monitored by the Target Date Solutions Committee, a seasoned group of investment professionals. They use a rigorous process to determine the glide path for the series and the combinations of American Funds in each “fund of funds.” 
  • As the fund moves along the glide path toward the enrollment date, managers modify the investment mix so that each fund’s portfolio gradually shifts from helping the assets grow to being more preservation-oriented.
  • The allocation strategy does not guarantee that investors’ education savings goals will be met. Investors and their advisers should periodically evaluate their investment to determine whether it continues to meet their needs.

American Funds College Target Date Glide Path

This chart shows the glide path: the allocation of the mix of underlying funds over time, from 18 years before college to college enrollment. The four categories of underlying funds are: growth funds (in dark blue), growth-and-income funds (in mid-blue), equity-income or balanced funds (in lighter blue), and fixed income funds (in green). The chart shows that at 18 years prior to college, the greatest allocation is to growth and growth-and-income funds (together, consisting of around 90% of total assets), followed by equity-income/balanced funds and balanced funds ( around 10%). As students approach college age, the allocation to growth and growth-and-income funds declines, and the allocations to equity-income/balanced funds and fixed income funds increase. At college enrollment, the allocation to fixed income funds is 100%.

* The nearest dated fund merges with the College Enrollment Fund when it reaches its target enrollment date.

 

The target allocations shown are as of July 1, 2020, and are subject to the oversight committee's discretion. The investment advisor anticipates assets will be invested within a range that deviates no more than 10% above or below these allocations. Underlying funds may be added or removed during the year. Changes in the equity allocation within the underlying equity-income and balanced funds may affect the overall equity exposure in the target date portfolios. For quarterly updates of the fund allocations, please click on the college target date fund shown in the fund information table below. 


Availability and Management

  • Anyone can invest in the American Funds College Target Date Series. Investors generally choose the fund with the target date closest to the year the student is expected to enroll in college but are not precluded from investing in other funds in the same CollegeAmerica® account.
  • The underlying American Funds in the American Funds College Target Date Series are managed using The Capital System®. The allocation percentages and underlying mutual funds within each Series fund are subject to the oversight committee's discretion and may evolve over time. Underlying funds may be added or removed at any time.

Fund Information


Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses and CollegeAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing. CollegeAmerica is distributed by American Funds Distributors, Inc. and sold through unaffiliated intermediaries. 

Depending on your state of residence, there may be an in-state plan that provides state tax and other state benefits, such as financial aid, scholarship funds and protection from creditors, not available through CollegeAmerica. Before investing in any state's 529 plan, investors should consult a tax advisor. 

For more information about the risks associated with each investment, go to its detailed information page or read the prospectus, if applicable. 

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

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