Mutual Fund And 401k Investors More Comfortable Than Ever With the Web

Mutual fund investors are becoming increasingly comfortable using the Web, according to the sixth annual American Century Internet Adoption Study, conducted by the Kansas City-based investment management firm. Apprehension about security and privacy continues to decline, with only a quarter (26 percent) citing security/privacy as a concern in the current study, dropping from 39 percent in 2000 and the high of 74 percent just four years ago.

Reliability also is becoming less of a concern with only 4 percent citing it in 2001, down from 14 in the first year of the study. This confidence in the Internet by mutual fund investors is reflected by the finding that nearly a quarter (23 percent) of those surveyed have used the Internet to make investment transactions such as buying, exchanging or selling stocks or mutual funds.

Investors in 401k plans also are increasingly utilizing the Internet to conduct business on their retirement plans. The percentage of investors who have used the Internet to access their 401k has increased significantly to 68 percent in this year's study, up from 43 percent in 1997.

Background

For the study, Elrick & Lavidge, a national marketing research firm, conducted telephone calls to 250 mutual fund investors who are at least 25 years old, currently access the Internet and have primary or joint responsibility for household financial decisions. Findings are statistically significant within +/- 5 percent at a 90 percent confidence level. ORC International CARAVAN study is the source for the 1998 through 2001 figures.

Rick Meigs, Publisher, 401khelpcenter.com, LLC