An overhaul of the nation's Social Security plan, one of the big-ticket items of newly reelected President Bush's second-term agenda, could create a windfall for mutual fund firms specializing in index funds, according to industry insiders.

Privatization, which would give investors the choice of how to invest their Social Security money, may not create the huge industry-wide boom that some might expect, however, as the government would most likely restrict investors' choices to large, well-diversified index funds. And the balances of these accounts would most likely be fairly small.

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.