Fund splitting refers to the process of dividing a fund share into several smaller shares. Fund splitting usually occurs after the net value of the fund rises, and the liquidity and market transparency of the fund can be improved through splitting. This paper will discuss in detail the significance and use of fund splitting.

1. Improve liquidity.

Fund splitting can improve the liquidity of funds and allow more investors to participate in fund transactions. The split fund share is smaller, which is convenient for small investors to purchase and redeem, lowers the investment threshold and expands the investment population.

2. Improve market transparency

Fund splitting can improve market transparency and make the net value of the fund more in line with market price fluctuations and closer to the actual value of the fund. When the net value of the fund is too high, the net value of the fund can be reduced by splitting, which can better reflect the market situation and avoid the phenomenon of "false high" net value.

Increase liquidity

Capital splitting can increase the liquidity of funds and enhance the market activity of funds. After the split, the fund share is smaller, which is convenient for investors to buy and sell, and the liquidity is enhanced. This is more convenient and flexible for investors who need day trading.

4. Attract more investors

Fund splitting can attract more investors to participate and expand the scale and influence of the fund. After the split, the fund share price is lower, which is more acceptable and attracts more investors' attention. This will help improve the fund's popularity and market share.

5. Reduce investment risks

Fund splitting can reduce the risk of investors and enhance their confidence in participating in the market. After the split, the fund share price is lower, and investors can diversify their investments by buying smaller shares, thus reducing the risk of a single investment target. At the same time, the split of funds also increases the liquidity of funds, so investors can allocate funds more flexibly and reduce the risks brought by market fluctuations.

Summary:

Fund splitting is to divide the fund share into smaller shares, which improves the liquidity and market transparency of the fund. It can promote the development of the market, attract more investors to participate and reduce investment risks. Fund splitting is of great significance to investors and helps to achieve a better return on investment.