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Offering vs. Choice in 401(k) Plan: Equity Exposure and Number of Funds (PDF)
Columbia Business School
Mar. 22, 2005
48 pages. Excerpt: Records of more than half a million participants in more than six hundred 401(k) pension plans indicate that participants tend to use a small number of funds: The number of participants using a given number of funds peaks at three funds and declines after more than three funds. Participants tend to allocate their contributions evenly across the funds they use, with the tendency weakening with the number of funds used. (September 2004 draft)
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