Shareholders should be careful before assuming that mutual fund mergers will necessarily translate into higher cost savings, some research analysts told The Associated Press.

While the recent deals like J.P. Morgan Chase & Co.'s $58 billion purchase of Bank One Corp. and Bank of America Corp.'s $47 billion acquisition of FleetBoston Financial Corp. created powerhouses of mutual fund lineups, Todd Trubey, an analyst with Morningstar, says that research shows that merged fund companies do not get rid of poor funds. Nor do they pass down savings to investors.

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.