Many investors believe that it is best to choose a large-scale fund. They believe that the bigger the company, the better, the less likely it is to go bankrupt and the income is guaranteed. Actually, it is not, because the larger the fund, the higher the amount required by the fund manager for a single transaction.

Although many fund managers are very optimistic about many stocks, it is difficult to accommodate so much money because of the small plate, and fund managers can only miss it in vain. Therefore, we must not think that the bigger the fund, the better.

The fund size can follow the following choices:

1. Index fund: The bigger the fund, the better.

Because index funds do not need active operation, it is the operation mode of fitting index. In this case, the larger the scale, the stronger the liquidity, and the better for investors.

2. Actively manage funds: 500-500 million.

Active funds have a great relationship with the timing ability of fund managers, because active funds need the choice and judgment of fund managers. The scale of 500-500 million will not lead to excessive erosion of earnings per share due to fixed payment fees such as audit fees, information disclosure fees and attorney fees, and at the same time, it will also avoid increasing the difficulty of operation due to excessive scale, thus making it difficult for fund managers to give full play to their personal abilities.

So is it clear now? On the way to raise the foundation, seek knowledge first, and then seek wealth.