It is not good that the fund is too big or too small. If the fund is too small, the operating expenses in the process of fund management will account for a higher proportion of management fee income, and the operating costs will also be higher. In addition, funds with small funds are more likely to be liquidated. Although the operating cost of large-scale funds is relatively low, they will encounter liquidity problems. Oversized funds, especially equity funds, will affect the liquidity of their portfolios. Generally speaking, if the investment target of equity funds is large-cap blue chips with high turnover rate, the impact on their liquidity will be relatively small; However, if the investment targets of equity funds are concentrated in a few stocks, the scale of the fund is too large, which may have a greater impact on its liquidity.

In the process of investment operation, large-scale buying or selling of fund managers will have an impact on the stock price. In addition, if a large-scale fund focuses on small and medium-sized stocks, its liquidity problem will be more prominent, because at this time, the fund manager will face the dilemma of selling stocks at an ideal price. This is one of the reasons why many foundations have suspended their subscription.

To judge the quality of a fund, we should make comprehensive analysis and comparison, not just look at its size: 1. Fund company: The bigger the fund company, the better. For example, Huaxia fund company is relatively large; 2. Fund manager: I have been engaged in the fund industry for a long time, and the funds managed by fund managers with good performance in the past are more secure. In addition, don't buy funds that frequently change fund managers; 3. The old fund is better. Because it has been established for a long time, its past performance can be used as a reference. Funds that perform well in both bull and bear markets are of course good funds. The newly established fund is risky because it has no performance reference. The size of the fund is not very important. Of course, large-scale funds are more difficult to operate, not as good as small funds.