How big is too big? Selectors' views on the giant funds in the universe

One of the most basic pieces of information on every fund's factsheet is its assets under management (AUM), but deciding whether the fund is a 'good size' or not can be a moot point. If a fund is too small, the cost of running it can eat into returns while, if a fund is too large, it can lose flexibility and liquidity.  According to our research using FE data, out of 3,239 unit trusts and OEICs sitting in the major equity, fixed interest and multi-asset sectors (including IA Unclassified), 319 (or 9.8%) are more than £1bn in size. At the other end of the scale, 1,230 (or 38%) are less...