Index fund is an important part of investment fund. For investors, it is very important to choose the scale of index fund and track the index. So, is the index fund big or small? How to choose the scale of index funds? Let's take a look at it next.

1. Is the index fund big or small?

Generally speaking, the larger the fund, the stronger its stability and anti-risk ability. So is the bigger the fund, the better?

In fact, the fund size will only affect partial-share active funds, and index funds can be divided into passive index funds and enhanced index funds, so the fund size will only affect enhanced index funds, but not passive index funds, which is also a major advantage of fund investment.

2. How to choose the index fund size?

In fact, for passive index funds, it is only necessary to consider whether the scale of investment index funds meets the anti-risk demand. Generally speaking, the larger the fund, the more effectively it can spread risks.

For enhanced index funds, although the index size will have some impact on index funds, the bigger the better. Enhanced index fund is essentially an active management fund. If the fund scale is too large, some enhancement factors may be passivated or even ineffective.

In fact, investing in a fund depends not only on its scale, but also on the profitability of the fund, the risk resistance of the fund manager, the performance of the fund, our own financial situation and the expected income target.

The above is about whether the index fund scale is good or small, and how to choose the index fund scale. I hope it will help everyone. Warm reminder, financial management is risky and investment needs to be cautious.