First of all, let's clarify the concept of fund share. Fund share refers to the number of shares that investors buy fund products in fund companies, that is to say, you have as many shares as you buy. Share is a key concept in the income distribution of fund products. Under normal circumstances, the fund company will count the net value of each fund product every day, then calculate the due income according to the number of shares held by each investor, and finally distribute the income to the investor's account at a specific time.
So, why is the fund share unchanged? We might as well analyze it from the following angles.
1. Income and share offset
In the process of investing in funds, net worth is an important indicator. If the net value of fund products continues to rise after purchase, then the number of shares held by investors multiplied by the net value can get higher asset value, and accordingly investors will get more income. However, if the net value of the fund falls, the asset value calculated by multiplying the number of shares held by investors by the net value will fall, and the income obtained by investors will also fall simultaneously. Therefore, the constant number of fund shares may be due to the fact that the income obtained by investors offsets the shares.
2. Dividend reinvestment
Some fund products allow investors to choose to obtain income separately or reinvest in dividends. If the investor chooses to reinvest in dividends, the income obtained by the investor will automatically buy the share of the fund products. In this case, the number of shares held by investors will increase, but the balance of available funds in the account will not increase, so the number of fund shares will not change at this time.
3. Transfer of funds
In the operation of fund companies, it may be necessary to call some funds for various reasons. There are many reasons for this situation, including the management problems of fund companies themselves, poor investment and operation of fund products, or the characteristics of fund products themselves. In this case, the fund company will call some funds from the fund product assets for emergency treatment, resulting in the same number of investors' fund shares.
To sum up, the same fund share does not mean that the fund products have no income, nor does it mean that investors holding funds have no income. In addition to the above reasons, it is also possible to hold some funds with lower returns, such as money funds, which are offset by inflation to some extent. Even so, for investors, it is still necessary to pay attention to the specific operation of the fund and find better investment products in order to obtain better returns.