529 plan assets continue to grow

Since the second quarter of 2011, the survey shows, net flows of funds were negative only two times: in the third quarter of 2011, when net inflows fell to $(0.4 billion); and again in the third quarter of 2012, when the negative net inflow was $(0.8 billion).

The more recent positive net inflows, the report states, indicate that "investors are successfully using 529 plans for their intended purpose of savings and spending their savings" on qualified higher education expenses (QHEE). "From an industry asset level perspective, 529 savings plans continue to reach year-over-year all-time highs. Therefore, investor interest in 529 plans and saving for education in a tax-efficient manner continues to rise."