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What's the Optimal Number of 401(k) Investment Categories?
planadviser; registration may be required 
Jan. 23, 2019
"[O]ffering fewer than 12 categories may mean that participants are not being given sufficient opportunity to diversify. Offering more than 20 investment categories could lead to lower average investment in each fund, which may cause higher fees. An overly large number of investment categories may also contribute to participant confusion."
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