The asset-weighted expense ratios for mutual funds fell to 74 basis points in 2006, down from 76 basis points the year before, according to the Investment Company Institute. That’s far lower than the average 1.5% that all stock funds charge.

“The 401(k) space is a highly competitive space, so you’ve got not only a whole bunch of mutual funds competing to be in the lineup, but a whole bunch of other products,” Sarah Holden, co-author of the ICI report, told the Associated Press.

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