Tag: mutual funds
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…
The brief’s key findings are: 401(k) performance is affected by the decisions of plan administrators as well as participant choices. Administrators choose mutual funds that perform worse than comparable indexes but better than comparable, randomly selected funds. When making changes to a plan’s fund offerings, administrators chase returns and do not improve performance. Participants also tend to…
