Do 401(k) Providers Favor Their Own Funds? Study suggests yes, and that underperforming funds are kept on menu too long

New academic research shows that mutual-fund companies tend to favor their own funds when setting the menus for the 401(k) plans they administer. Some service providers already are independent, although the proportion of plans run by mutual-fund companies has increased from about 60% in 1998 to 75%...

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Bibliographic Details
Published in:The Wall Street journal. Eastern edition 2016-07-05
Main Author: Blackman, Andrew
Format: Newspaper Article
Language:English
Subjects:
Conflicts of interest
Deferred compensation
Favoritism
Investments
Mutual funds
Studies
Online Access:Get full text
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Summary:New academic research shows that mutual-fund companies tend to favor their own funds when setting the menus for the 401(k) plans they administer. Some service providers already are independent, although the proportion of plans run by mutual-fund companies has increased from about 60% in 1998 to 75% in 2009.
ISSN:2574-9579