In essence, a fund is a fund company that raises funds from investors and then uses these funds to invest. Fund companies and investors have a single risk and share benefits. The performance of a fund depends on its total assets, which consist of fund shares and fund net value. If the fund share remains unchanged, the fund manager will complete the performance, and the net value of the fund will rise. The current net value will be higher than the net value when investors buy, and investors can make money. However, at this time, some investors may be worried that they will face the risk of falling net worth if they continue to hold it, thinking about fund redemption and leaving their bags for safety. At this time, the share of the fund will decrease. In order to maintain the stability of the total scale of the fund and ensure the normal operation of the fund, the fund company thought of a way, that is, splitting and copying the fund.

Fund splitting is to artificially reduce the net value of the fund and increase the fund share in the hands of investors while keeping the fund size unchanged. The downward adjustment of the fund's net value will bring the psychological effect that the fund price becomes cheaper to investors.

The influence of spin-off is manifold.

If the fund is split in a bull market, the split will lead to the reduction of stock positions, which will affect the income of the whole fund and damage the interests of the holders, but it will be additional income for the new holders. If the split occurs in a bear market, the original holder will be protected.

If the market is not considered, the split of the fund is of no practical significance to the holders, and the net value of the fund will increase and decrease, and the total value of the fund will remain unchanged.

For fund companies, lowering the net value will make the fund cheaper, attract more investors to subscribe and earn more management fees.

Fund separation is also a certain challenge for fund managers. The operating strategy of a well-run fund is relatively stable. The sudden increase of fund scale brought by the separation of funds will have a certain impact on the operation strategy, and the impact is unpredictable.