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Administration December 11, 2001
DC Plans A Starting Point for Most Fund Holders: ICI
November 12, 2001 (PLANSPONSOR.com) -While nearly
60% of current mutual fund holders made their first such
purchase through a defined contribution plan, only about a
third today hold mutual funds only in such
vehicles.
Reported by editors@plansponsor.com
In addition, according to the Investment Company Institute (ICI)?s 2001 profile of fund shareholders,
- 38% own only funds outside of such plans, and
- almost a third own funds both inside and outside of a retirement plan
Risky Business
In terms of risk, the study reveals that:
- about 48% of investors favor taking an average amount of risk for average returns,
- while 31% prefer above-average risk for above-average gain
According to the study, as of May, 93.3 million individuals, representing 52% of all US households, owned mutual funds. Of those polled by ICI:
- the majority, 97%, consider themselves long-term investors,
- almost 85% indicate they are not overly concerned with short-term market fluctuations, and
- close to half of fund shareholders made their first fund investment before 1990,
Further proof that most fund investors take a long-term view in the mutual fund market – some 72% of shareholders of shareholders identified retirement as their primary financial goal,
– Camilla Klein editors@plansponsor.com