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The proposal to leave the system more or less unchanged "prioritises freedom of choice". However, the inquiry also cited the relatively high cost of supporting so much choice – there are currently more than 800 funds in the system. It also pointed out that, with so many funds, the difference between the best and worst performers can vary "enormously". The second alternative would limit choice to between one and 10 funds.
AMF, one of the largest pension providers in Sweden, lent its support to the more radical proposal, with fewer funds and stricter requirements, which it said would cut costs and make the number of funds more manageable. It said it would also like to see a cap on fees and the introduction of an annual fee per fund, which would incentivise fund companies to reduce the number of funds in the system.
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