1, the fund is large and the operation is difficult. Because of its large scale, it needs to allocate more stocks, which may make it difficult for fund managers to concentrate on tracking each stock, which is not conducive to fund managers' position adjustment and affects the flexibility of operation.
2. Large funds are generally allocated to some large-cap stocks with good liquidity, and their excess expected returns are relatively low.
Of course, the large scale of the fund also has certain advantages. In the operation of the fund, its fixed information disclosure fees, audit fees, attorney fees and other expenses are allocated to the fund. Because of its large scale, the handling fee for investors to buy is relatively low. The risk of liquidation is low.
In short, investors should try to choose a fund with a moderate scale when choosing a fund. At the same time, they need to consider the historical performance of the fund, the management ability of fund managers and the trend of fund themes.