How Does Simplified Disclosure Affect Individuals' Mutual Fund Choices?

Edited by John Beshears, James J. Choi, David Laibson and Brigitte C. Madrian

in Explorations in the Economics of Aging

Published by University of Chicago Press

Published in print May 2011 | ISBN: 9780226903378
Published online February 2013 | e-ISBN: 9780226903385 | DOI:
How Does Simplified Disclosure Affect Individuals' Mutual Fund Choices?

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The chapter illustrates that plan features such as automatic enrollment and the default provisions of such plans have tremendous influence on the likelihood of participation, the amount saved, and the allocation of assets across the investment alternatives in the plan. More recent work has focused more extensively on portfolio allocation and its implications, such as the extent to which fund management fees are considered in investment decisions in 401(k) plans, and how the salience of management fees may impact investment decision making. The chapter also adds to the understanding of how people make financial decisions, and how financial decision making might be improved through simple policy changes or interventions.

Keywords: Securities and Exchange Commission; mutual funds; Securities Act; portfolio allocation; retirement; 401(k) plan

Chapter.  9381 words.  Illustrated.

Subjects: Public Economics

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