1 option
It Pays to Set the Menu: Mutual Fund Investment Options in 401(k) Plans / Veronika K. Pool, Clemens Sialm, Irina Stefanescu.
- Format:
- Book
- Author/Creator:
- Pool, Veronika K.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w18764.
- NBER working paper series no. w18764
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Other Title:
- It Pays to Set the Menu Mutual Fund Investment Options in 401
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2013.
- Summary:
- This paper investigates whether mutual fund families acting as trustees of 401(k) plans display favoritism toward their own funds. Using a hand-collected dataset on retirement investment options, we show that poorly-performing funds are less likely to be removed from and more likely to be added to a 401(k) menu if they are affiliated with the plan trustee. We find no evidence that plan participants undo this affiliation bias through their investment choices. Finally, the subsequent performance of poorly-performing affiliated funds indicates that these trustee decisions are not information driven and are costly to retirement savers.
- Notes:
- Print version record
- February 2013.
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