Quantitative funds have distinct characteristics in investment style. After selecting individual stocks through quantitative model, fund managers diversify their investments in underlying stocks. Therefore, quantitative funds generally hold relatively scattered shares and make less concentrated investments to avoid the unsystematic risks of individual stocks. When investors choose quantitative funds, they should also consider this feature and choose funds with long-term decentralized holdings.

Secondly, quantitative funds are more vulnerable to scale impact than ordinary equity funds in the process of investment operation because of their scattered equity and large number of shares. Although there is no precedent in China, the mainstream view abroad is that there is a scale bottleneck in the operation of quantitative funds. The main reason is that most quantitative funds aim at chasing alpha returns, but the greater the investment, the more the alpha returns will be diluted, and it is difficult for quantitative funds to obtain a large number of excess returns. Therefore, when investors choose quantitative funds, they need to consider the scale and changes of funds, and it is not appropriate to choose funds with too large scale or large scale changes.

In addition, for quantitative funds, product design determines that funds rarely make artificial adjustments to their investments. Therefore, for investors who quantify funds, it is more important to look for funds with relatively stable performance, rather than funds that are absolutely ahead of excess returns.

Finally, no matter what kind of classification and model the quantitative fund belongs to, its essence is still the fund that invests in the securities market, and its risk is linked to the fluctuation of the investment target. Since active quantitative funds cannot avoid systemic risks, investors should not forget to consider whether the risk level of funds is suitable for individual investors to allocate assets when choosing quantitative funds.