Study: Being choosy on mutual funds doesn't boost 401(k) results

01/15/2013 |

Mutual funds chosen by employers or individuals don't show significantly better returns than randomly selected funds, according to a Boston College study. While the mutual fund choices of 401(k) administrators mildly outperformed random fund selections, their expenses also were higher than those of passive index funds, the study found. "This finding suggests that plan managers were chasing returns, but their efforts to tinker with their fund selections had essentially no impact on overall performance," according to the study authors.

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