J.P. Morgan Wealth Management advisors will start offering select 529 college savings investment plans without the industry standard upfront fee, the company said Monday.
The fee, also known as a sales charge or front-end load, on advisor-sold investments can be as high as 5.75%, the firm pointed out.
But other fees and expenses will continue to apply to advisor-sold 529 college savings plans, the company said.
Asked why the firm decided to drop the front-end fee right now, a company spokeswoman said only: "This change will help clients put more of their money towards their college investing goals. We're committed to making investing more accessible."
J.P. Morgan didn't eliminate other fees because the upfront fee "is the only fee that the broker-dealer is able to waive on Class A shares," she added.
The company noted that college tuition costs are rising 6.3% each year, according to J.P. Morgan's recent College Planning Essentials report.
