A small, but growing number of 401(k) investors, burned by the steep negative returns in 2008, are moving assets into such capital preservation funds as stable-value and money market funds, Mercer Consulting reported.

Assets in such funds grew 70% in 2008, evidently moving directly out of equity mutual funds, whose assets in 401(k) plans shrank by 70%.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.