For pension, 401(k), and profit-sharing plans, mutual funds also offer significant advantages. The fiduciary responsibilities implicit in these plans are similar to those faced by trustees. With mutual funds, corporate officers can maintain control over their company's plans while at the same time fulfilling those fiduciary obligations. They can obtain the particular investment objectives and policies set forth by their plans and meet IRS requirements for maintaining the plans' tax-exempt status.

Among the largest investors in mutual funds are schools, colleges, foundations, hospitals, religious organizations, libraries, unions, and fraternal associations. Such institutions often don't have qualified personnel to handle the proper investment of their funds. However, even when they do, they often find it more convenient and prudent to utilize mutual funds for the same reasons that other large investors find advantageous �clearly defined investment objectives and policies, diversification, sound investment management.