While small-time investors are able to invest more often and safely, some caveats in mutual fund regulations have prevented them from maximizing their returns, according to a Milken Institute Review article.

The article, written by Professor Eugene White of Rutgers University, says that as assets in funds have risen almost six-fold from $1.1 trillion in 1990 to $6.3 trillion in 2002, reforms like making directors independent and implementing incentive shifts for fund managers are needed to stop investors from getting the shaft.

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.