Having too many choices has proven to actually decrease participation in defined contribution plans such as 401(k)s, even when participants are incented to participate through a matching contribution.
Have you ever been to an unfamiliar city and stopped for directions on how to get to your final destination? If you were to ask several local citizens, you would likely receive multiple and even different detailed expressions of these directions. The difficulty then becomes deciphering which “direction” will get us there quickly and with a minimal number of “wrong” turns. As investors your destinations are slightly different yet you commonly use similar investment vehicles (mutual funds) to travel this path. Each of you plan and hope to reach your goals quickly and with minimal risk.