One of the more dramatic industry changes in recent years is the way that individual investors choose their investment managers, according to The Wall Street Journal.

A few years ago, there was a group of big-name managers sought by investors, but since the technology bust and the increasing numbers of fund manager caught in scandals, investors are basing their choice on the investment company, not an individual manager.

What they are looking for is a scandal-free organization with a capability to provide solid, steady returns. The first three quarters of this year show that investors are more likely to pick index funds, exchange-trade funds, or funds run by teams of two to nine people.

As a result, many companies are veering from the single manager approach to a team concept. The results are dramatic, according to Financial Research Corp. in Boston, which found that where one star manager earned returns of 8.2% in 1995, a group can earn up to 20% in returns.

Although team management is now more attractive than individually managed funds, there are drawbacks. The biggest is that a group of advisers is not liable to show how much work he or she does, and what decisions are made individually.

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