Articles for Financial Advisors

401(k) Trustees

401(k) Trustees

According to a study by Pool, Sialm, and Stefanescu, trustees of 401(k) plans often show favoritism toward their own funds. For example, from 1998 to 2009, the study found nonaffiliated mutual fund trustees were 2.5 times more likely to remove a poor-performing mutual fund than if the trustee were affiliated with the fund family.

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