Why would a mutual fund company want to be bothered offering a 401(k) plan to a company with fewer than 100 employees when a 401(k) account at a single Fortune 500 company can mean tens of millions of dollars of assets under management?

Many employees at small businesses are not interested in saving, and their employers do not want to spend the several thousand dollars it would cost them to offer a 401(k) plan, according to the 1999 Small Employer Retirement Survey. Overall, the survey suggested that it is still difficult for a mutual fund company to penetrate this market.

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