Multi-Fund Investment Options
Consider this if you want investment options with more choices when it comes to diversity and strategy.
Some investors want added control over their investment option’s diversification and investment strategy. If you‘re one of those people, the Multi-Fund Investment Options available through the Michigan Education Savings Program (MESP) might be the investment type for you.
With the Multi-Fund Investment Options, you can select from a range of investment types suitable for a variety of risk profiles and asset allocation blends. Choices may include options such as international investments, which are investments made entirely outside the U.S., balanced funds that own both stocks and bonds and bond funds that invest in debt securities.
Most investment options also include index and actively managed choices. Index funds are designed to track a benchmark index. Active management, by contrast, is managed using research, forecasts and their own experience to make investment decisions.
No matter which option(s) you choose, it’s important to note that once you’ve selected an investment, the funds will remain there until you select another.
How Multi-Fund Investment Options work
These investment options seek to provide options for people who prefer to select an investment option for its asset allocation. Each Multi-Fund Investment Option has a different investment objective and investment strategy.
The allocations to the underlying mutual funds in the Multi-Fund Investment Options do not change automatically as the beneficiary ages as they do in the Enrollment Year Investment Options. Investments will remain in the Multi-Fund Investment Option until the account owner instructs the Program to move them to another investment option. The Michigan Department of Treasury may change the asset allocations and underlying mutual funds for these investment options (as well as for the other investment options) at any time.
|Investment Name||Risk Level||Investment Objective||Allocation|
|Aggressive Allocation Option||Aggressive||This Investment Option seeks to provide a favorable long-term total return, mainly through capital appreciation.||
|Moderate Allocation Option||Moderate to Aggressive||This Investment Option seeks moderate growth.||
|Conservative Allocation Option||Moderate||This Investment Option seeks to provide moderate long-term total return mainly through current income.||
|International Equity Index Option||Aggressive||This Investment Option seeks to provide a favorable long-term total return, mainly through capital appreciation.||
|Global Equity Index Option||Aggressive||This Investment Option seeks to provide a favorable long-term total return, mainly from capital appreciation.||
|100% Fixed-Income Option||Moderate||This Investment Option seeks to provide a moderate long-term rate of return primarily through current income.||
The investment options are subject to the risks of the underlying funds including the loss of principal.
Things to consider
Changing your investments
Once you invest in a particular investment option, you can transfer contributions and any earnings to another investment option up to twice per calendar year or upon a transfer of funds to a MESP account for a different beneficiary.
Periodically reviewing your investments
It’s a good idea to periodically reevaluate your investment strategy as your goals, investment horizon and personal situation changes—for example, annually at tax time, on a yearly basis if your income changes or upon the birth of another child.
More to explore
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