Fund split, also known as split fund, refers to a way to change the corresponding relationship between the net value of fund shares and the total amount of fund shares and recalculate the fund assets on the premise of keeping the total assets of fund investors unchanged.

After the fund is split, the original portfolio remains unchanged, the fund manager remains unchanged, the fund share increases, and the net value of unit share decreases. The split of fund shares can reduce the net value of fund shares by directly adjusting the number of fund shares, without affecting the realized income, unrealized income and paid-in fund.

Extended data:

I. Reasons

According to the fund company's explanation, fund splitting can reduce investors' sensitivity to price, which is conducive to the continuous marketing of the fund, improve the structure of fund share holders, and help fund managers to operate the fund more effectively, thus implementing the investment concept and investment concept of fund operation.

Split funds mainly have excellent past performance and high net worth. In order to meet the psychological needs of investors and break the market paradox, investors can buy good funds at relatively cheap prices. The split of fund shares can also effectively solve the problem of "compulsory dividend", effectively reduce transaction costs and reduce the influence of day trading on the securities market.

Therefore, these old funds with excellent performance and relatively small scale may choose to split the fund and attract more investors to improve the holder structure and fund size without affecting the original holders. The size of the split fund is generally small, and the expansion of the scale after the split is unfavorable to the operation of the fund.

Second, advantages

Fund splitting can accurately adjust the net value of fund shares to 1 yuan, but it is difficult to accurately adjust the net value of fund shares to 1 yuan with a large proportion of dividends.

In addition, in order to realize a large proportion of dividends, it is possible to forcibly sell some stocks in a short time and realize unrealized gains as realized gains, which may harm the interests of investors and make them lose investment opportunities.

The split will not affect the realized income, unrealized income, paid-in funds and other accounting subjects and their proportional relationship, and will not have a substantial adverse impact on the rights and interests of investors.

Baidu Encyclopedia-Fund Split