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What does the fund split ratio mean?
The split ratio of the fund refers to the ratio that the total share of the fund is split into multiple shares. For example, a fund has 1000 shares, and now it is split according to the split ratio of 1: 10, so the original 10000 shares will become10000 shares.

So, what is the specific significance of the fund split ratio?

First of all, the fund split can make the fund share price more reasonable. As shown in the above example, if the original price of a fund is 100 yuan, then after the split 1: 10 yuan, you need to pay 100 yuan to buy ten times the original price, that is, 10 shares. This makes it easier for some novice investors to invest without buying more stocks.

Secondly, the fund split ratio can increase the liquidity of the fund. For example, the total share of a fund has been issued, but its share price is very high, causing investors to buy only a small share or not at all. At this time, the fund company can increase its liquidity by splitting without affecting the market value of the fund, so as to better meet the needs of investors.

In addition, the fund split ratio can also increase the visibility of fund companies and investors' confidence in the fund. When the share price of a fund is high, some investors will think that the fund is in a high-risk state and dare not buy it. The fund split can increase the liquidity of the fund and then reduce its share price, which also reflects the strength and reputation of the fund company to some extent.

So, how to determine the proportion of capital splitting?

Generally speaking, many factors need to be considered in determining the fund split ratio, including the asset size of the fund, the price of the fund share, the demand of investors and so on. Usually, some funds with larger assets and higher stock prices are easier to split. In addition, investors' demand for funds will also affect the split ratio.

It should be noted that many factors need to be considered in determining the fund split ratio, the most important of which is to meet the needs of investors and better promote the development of the fund market.

To sum up, the fund split ratio is the operation of fund companies to curb excessive prices and increase liquidity. The determination of the split ratio needs to consider many factors such as the asset size of the fund, the price of the fund share, the demand of investors and so on.