Byline: Mike Clowes
The mutual fund bubble has burst.
The taint of scandal has pricked it, and mutual funds will never again grow as fast as they did in the last decade of the 20th century.
Mutual fund growth in that decade was a classic bubble. Assets poured into mutual funds at an unprecedented rate as money flowed into defined contribution pension plans.
Mutual fund assets surged to $4.1 trillion in 2001, from $1.9 trillion in 1995, as assets in defined contribution plans boomed. In addition, investors poured non-retirement-plan savi