Is it appropriate to buy after the fund is split? I believe that the new people who have just set foot in the fund purchase are not very clear about the meaning behind the fund split, so Bian Xiao sorted out whether it is suitable for purchase after the fund split, hoping to help everyone.
Is it suitable to buy after the fund is split?
It is not appropriate, because if the fund continues to be listed in a limited amount after the split, the fund company will take a proportional placement. Therefore, it is best to buy a graded fund before the fund is split. The high net value of the fund before the split may make some investors afraid to start, but after the split, the net value will be unified and the foundation will attract large-scale subscription. At this time, the income of investors who buy split funds will be much worse than that of investors before split funds.
Fund split, also known as split fund. Fund split refers to a way of recalculating fund assets by changing the corresponding relationship between the net value of fund shares and the total amount of fund shares on the premise of keeping the total assets held by fund investors unchanged. After the fund is split, the original portfolio remains unchanged, the fund manager remains unchanged, the fund share increases, but the net value of unit share decreases.
Why does the fund split lose money?
The main reason for the loss in fund splitting is that the total amount of book funds of the holder is less or more after the fund splitting one or two days ago due to the system calculation error, and the total amount of funds has not changed, but it will return to normal in a few days. Looking at the domestic fund trading market, fund splitting is generally an old fund with long operation time and good returns. For various reasons, the split of the old fund will not adversely affect the holders.
Is the fund split good or bad?
From the company's point of view, capital splitting is good.
After the large-scale split of the fund, the net value will decrease, giving investors the illusion that the price is low and suitable for buying, thus attracting investors to buy and profit from it.
From the perspective of investors, fund split is neutral.
Fund split is a way to recalculate fund assets while keeping the total assets of investors unchanged. Simply put, after the spin-off, the fund share will increase, the unit net value will decrease, and the total assets will remain unchanged. The calculation method of fund income remains unchanged. Therefore, there is no loss to the substantial rights and interests of investors after the spin-off.
In short, when investing, investors should remember one sentence, there will be no pie in the sky. Both fund splitting and fund dividends are common operations in the fund market and will not bring any substantial benefits to investors. Of course, split funds tend to be funds with excellent past performance and high net worth, which also reflects that the funds purchased by investors are good.