A recent academic study examined whether mutual fund companies that act as trustees for 401(k) plans “display favoritism towards their own funds.” Although its conclusions will not shock many advisers, the research can be useful as a source of independent evidence on this important issue, and reinforce the vital role that an independent adviser can play in overseeing plan investments.
The study, titled “It Pays to Set the Menu: Mutual Fund Investment Options in 401(k) Plans,” offers the following conclusions:
