Fund splitting refers to splitting a large fund into several smaller fund shares, and investors can buy the split fund shares as needed. The split fund shares have smaller face value and higher liquidity, which provides investors with greater choice and flexibility.

1. background of fund splitting With the continuous development of China's capital market and the growing fund industry, some fund products with large scale have gradually emerged. For some small investors, there may be a big threshold for buying large fund shares. In order to meet the needs of investors, fund companies began to split large funds into small fund shares, which lowered the investment threshold and allowed more investors to participate in fund investment.

2. The principle of fund splitting The principle of fund splitting can be simply understood as adjusting the face value of a large fund and splitting it into several smaller fund shares. The face value of the split fund share is small, which is convenient for small investors to buy. At the same time, the split fund shares are more liquid, and investors can buy and sell fund shares more conveniently when needed.

3. Benefits of fund splitting Fund splitting has many benefits for investors. Fund splitting lowers the investment threshold and allows more small investors to participate in fund investment. The split fund shares are more liquid and investors are more flexible in buying and selling. Fund splitting also helps to reduce the risk of price fluctuation of fund products and the risk brought by concentrated investment.

4. Precautions for purchasing split funds When purchasing split funds, investors need to pay attention to the following aspects. It is necessary to know whether the split fund share has the same investment strategy and risk-return characteristics as the original fund share. Pay attention to whether the fund company has set a minimum subscription amount for the split fund share. Investors should also pay attention to whether the fund company will charge extra fees for the split fund shares.

5. The influence of fund splitting on fund companies; Fund splitting also has a certain impact on fund companies. Fund splitting can attract more small investors to participate in fund investment and increase the investor base of fund companies. Fund splitting can improve the liquidity of funds and help to increase the trading volume and fund size of funds. Fund splitting can also help fund companies reduce the risk of fund share price fluctuation and enhance the market competitiveness of products.

Fund splitting is the operation of splitting a large fund into small fund shares, which helps to lower the investment threshold and increase the choice and flexibility of investors. Investors need to pay attention to relevant precautions when buying split funds. At the same time, fund splitting also has a certain impact on fund companies. With the continuous development of China's capital market, fund splitting will have a wider application and a bigger development space.