We consider the size of the fund for several main reasons.
First, the size of the fund is too small.
According to the relevant regulations, if there are "less than 200 holders or the fund size is less than 50 million yuan" for 60 consecutive working days, the fund will face the risk of liquidation. So we need to pay attention to this when choosing a fund. For example, a relatively small fund has a scale of one or two hundred million. Pay attention to the structure of fund holders. If the proportion of institutional investors is relatively large, the risk coefficient of such funds will be high. Because of the large amount of institutional funds, if the funds are redeemed, the scale of funds will be very obvious.
There is a small-scale fund that is not prone to liquidation risk, that is, the initiated fund, and the word "initiated" will obviously appear in the fund name.
Second, the scale of the fund is too large.
When the fund scale is too large or suddenly increases, we also need to worry about whether the fund manager can manage it calmly or whether it is beyond the fund manager's ability circle. Thereby affecting the performance of the fund.
If the scale of a single fund exceeds 654.38+000 billion, it will be a great challenge. If it is a fund manager who manages such funds for a long time, it is another matter.
It is not easy to choose a good fund. When the fund scale suddenly increases, don't rush to change funds. You can give the fund manager some time to digest and make a decision after in-depth observation.
Third, innovation.
If you want to make new contributions in the fund, you should pay attention to the scale of the fund, because if you want to make new and thick income from the fund, the scale of the fund should not be too large. If it is too large, it will dilute the new income.
Considering the above three factors, the influence of fund size on fund selection is not significant.