1. Funds with a very large corpus are prone to inefficiencies as rising assets become unmanageable after a point.
2. Also, most fund managers are comfortable managing a mid-sized fund and an increase in the AUM can adversely affect their performance.
3. This is because large assets force fund managers to broaden their stock universe, which sometimes results in less researched or low potential stocks in the portfolio.
2. Also, most fund managers are comfortable managing a mid-sized fund and an increase in the AUM can adversely affect their performance.
3. This is because large assets force fund managers to broaden their stock universe, which sometimes results in less researched or low potential stocks in the portfolio.