Tag: mutual funds
Opponents shouldn’t block 403(b)s from purchasing collective investment trusts. Anyone concerned about fees in retirement plans should be delighted that the use of collective investment trusts (CITs) that invest in the same assets as mutual funds has been increasing among 401(k) plans (see Figure 1) and that the SECURE 2.0 legislation allows 403(b) plans to…
The brief’s key findings are: Mutual fund companies that are trustees of 401(k) plans must serve plan participants’ needs, but they also have an incentive to promote their own funds. The analysis suggests that these trustees tend to favor their own funds, especially their poor-quality funds. And 401(k) participants do not offset this bias by…