When it comes to financial service providers (and many other businesses), customers like "bigness." People seem to instinctively believe that a big shop, or a big retail chain or a big newspaper will provide better goods or services. Presumably, the underlying logic is that a business becomes big only if their customers are happy. This may or may not be true in all cases.
However, it's certainly far from the truth in the case of mutual funds. A lot of investors believe that the size of a mutual fund is important. In this context, size means the amount of money that a fund manages. This belief has no real basis. There's no inherent reason why a larger fund should be better than a smaller one.
