Rankings of Best and Worst 529 Savings Plans

Investors in Ohio’s CollegeAdvantage 529 savings plans have something to feel good about.  The Morningstar investment research firm ranked the savings plan as the best in its rankings released today.  The research firm liked the fact that the Ohio Tuition Trust Authority not only created the plan, but it manages it as well.  Both low fees and a variety of investment options, including age-based options, were important factors in Morningstar’s favorable ranking.

The news for the brokerage sold Ohio Putnam CollegeAdvantage fund was not nearly as good.  Morningstar ranked the Putnam fund “at the polar opposite end of the spectrum.”  The research firm did not like the fund’s heavy exposure to Putnam Funds and recommends avoiding the plan.