Both the pension plans and mutual funds are designed for various business functions and objectives. This feature makes the comparison of investment fund management not to be straight forward. Pension plans offer the participants guaranteed income when they retire where as mutual funds gives the participants professional savings management through pooling of assets. Both of them offer a variety of services to their clients and are subject to various regulatory schemes, they make use of diverse accounting and reporting principles.

Mutual funds pay more than the pension plan for port folio management services. The comparison give some significant implications for the studies and the comparison of the portfolio management cost incurred in pension plans and mutual funds. There should be great care in ensuring that the same method is applied in measuring the savings management to avoid making erroneous conclusions.

The expenses incurred by shared finances for portfolio management are almost similar to those incurred by the civic pension sketch for exterior management of their portfolios.

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