How much does fund size matter?

Smaller funds still packing a punch

clock • 4 min read

Buy list concentration, the appeal of 'star' fund managers and liquidity issues can result in many fund buyers sticking to a select few vehicles, which in turn leads to high levels of AUM in a small number of funds.

However, they could be missing a trick; are there smaller, more nimble and therefore more attractive funds out there that are being overshadowed by household names? Or should investors retain conviction in their favoured, larger funds, in spite of their growing assets under management (AUM)? Small advantages Peter Brunt, associate director of equity strategies and manager of research at Morningstar, said there are advantages to investing in smaller funds. "Firstly, the manager can be more nimble when investing in companies with a smaller market capitalisation because it is easier...

To continue reading this article...

Join Professional Adviser

  • Unlimited access to real-time news, industry insights and market intelligence.
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters.
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection.
  • Members-only access to the editor’s weekly Friday commentary
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Investment

FCA greenlights £839m Rathbones/Investec W&I merger deal

FCA greenlights £839m Rathbones/Investec W&I merger deal

Shareholder approval required following regulator sign off

clock 02 June 2023 • 1 min read
Sustainable Investment Festival 2023: Consumer Duty meets ESG

Sustainable Investment Festival 2023: Consumer Duty meets ESG

Specialist two-day event will look specifically at meeting new regulations

Professional Adviser
clock 01 June 2023 • 1 min read
PA Working Lunches: Join us for an in-person event in Exeter

PA Working Lunches: Join us for an in-person event in Exeter

Join us for lunch and an informative session worth one hour of CPD

Professional Adviser
clock 30 May 2023 • 1 min read