The number of employees switching asset allocations in their 401(k) programs increased in the month of January, according to an index released by Hewitt Associates of Chicago that measures the daily activity of 401(k) assets of 1.5 million employees.

The net activity for the month of January was 0.12 percent, up from 0.08 percent for the same period last year. Reallocations from fixed income funds to equity funds made up most of the activity, according to Lori Lucas, a defined contribution consultant with Hewitt.

"The increase in activity corresponds to an increase in market volatility and it could possibly be the result of investors who waited until after the first of the year to invest because of Y2K concerns," Lucas said.

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