Asset Size

Asset Size
The total market value of the securities in a mutual fund's portfolio. Total assets or total net assets are also used to describe a fund's size.

When it comes to the size of a mutual fund, bigger is not necessarily better. The key to a fund's investment quality, in terms of the amount of money under management, lies in the compatibility of a fund's asset size and its investment style.

So-called "asset bloat" is not much of a problem for bond, index and money market funds, which generally operate in large market segments that are very liquid and are less affected by large block trading transactions. With these funds, bigger is actually better because expenses can be spread over more investment assets.

However, if a managed stock fund gets flooded with new money, the investment managers may find it difficult to invest it in an efficient manner. As fund assets rise, the number of appropriate new stock prospects shrink and transaction costs increase, which makes maintaining the fund's investment style difficult.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • Asset allocation — is a term used to refer to how an investor distributes his or her investments among various classes of investment vehicles (e.g., stocks and bonds). A large part of financial planning is finding an asset allocation that is appropriate for a given …   Wikipedia

  • asset/liability management committee — ( ALCO) A committee, usually comprising senior managers, responsible for managing assets and liabilities to maximize income and safety over the long run. In a financial institution, the ALCO is usually responsible for asset and liability… …   Financial and business terms

  • Asset-based lending — In the simplest meaning, asset based lending is any kind of lending secured by an asset. This means, if the loan is not repaid, the asset is taken. In this sense, a mortgage is an example of an asset backed loan. More commonly however, the phrase …   Wikipedia

  • Asset Management Plan — An Asset Management Plan (AMP) is a tactical plan for managing an organisation s infrastructure and other assets in order to deliver an agreed standard of service. Typically, an Asset Management Plan will cover more than a single asset, taking a… …   Wikipedia

  • National Asset Management Agency — Agency overview Formed Late 2009 Jurisdiction Ireland …   Wikipedia

  • Digital asset management — (DAM) consists of management tasks and decisions surrounding the ingestion, annotation, cataloguing, storage, retrieval and distribution of digital assets. Digital photographs, animations, videos and music exemplify the target areas of media… …   Wikipedia

  • Troubled Asset Relief Program — TARP redirects here. For other uses, see Tarp. This article is about the Treasury fund. For the legislative bill and subsequent law, see Public Law 110 343. For the legislative history and the events leading to the law, see Emergency Economic… …   Wikipedia

  • Software Asset Management — (SAM) is a business practice that involves managing and optimizing the purchase, deployment, maintenance, utilization, and disposal of software applications within an organization. According to the Information Technology Infrastructure Library… …   Wikipedia

  • Marathon Asset Management — Type Private Industry Hedge fund, distressed securities, investment management Founded …   Wikipedia

  • Institute of Asset Management — Infobox Organization name = Institute of Asset Management |thumb image border = size = 200px caption = formation = type = Not for profit Professional / Membership Organisation. headquarters = London location = International. membership =… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”