Why is the bigger the fund, the smaller the risk?
The scale of fund products is directly proportional to its annualized rate of return. In other words, the bigger the money market fund, the better its performance, the higher its rate of return and the smaller its relative risk, but this is not necessarily the case for equity funds. When it reaches a certain scale, it will be closed in consideration of its income, just like the case of large-scale market selection in China. I am worried that the unlimited expansion of its scale will dilute its income, mainly because there are bulls and bears in the market, the risk of large-scale funds encountering a bear market will increase, and the unrealized profits will decrease!