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.

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