Asset Size

Total amount of assets under management by a fund expressed in dollars.

An increasing asset size tends to be beneficial to investors at first, as commissions as a percentage of total assets decreases, yet as asset sizes increase to large levels, it becomes more difficult to generate large returns. That is why Buffett’s holding company Berkshire Hathaway(though technically not a mutual fund) has experienced lower returns as its assets have ballooned due to his successful investments.

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