At present, it is not easy to buy when the fund is split.

Look at the following about splitting:

What is capital division?

Maybe many friends don't know what division is. Let's briefly introduce it first! Fund split is to split the original fund share with a net value greater than 1 into multiple shares in units of 1. For a simple example, if I hold 10000 funds, each with a net value of 1.6 yuan, then according to the split plan of this fund company, my fund share will become 16000, and the net value of the fund will be adjusted to 1 yuan.

Ha ha! I see it! Whether it is split or not, in fact, the total value of the fund I hold has not changed, or 16000 yuan.

So why do fund companies have to split up? 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.

I agree with some explanations given by the fund company. For example, reducing the price sensitivity of some people who don't really understand the fund is conducive to the continuous marketing of the fund (expanding the subscription share). But I really don't see any reasonable explanation for the second half sentence.

In my opinion, no matter whether the total amount of funds is large or small, the fund investment concept formulated by fund companies should remain unchanged. Split processing is nothing more than trying to attract incremental funds and expand the total amount of funds. Of course, the management fees that fund companies can withdraw will also increase.

However, because the threshold is lowered, a large part of them are attracted by immature funds (please allow me to say so, because truly mature funds don't care about the net value of the fund), and it is this immature fund that will inevitably bring potential instability to the future net value of the fund. And this motivation to drive profits is very unfavorable to the long-term development of the fund.

Allow me to make an analogy with Buffett's company. As we all know, Ba Lao's company (similar to closed-end investment fund) never pays dividends or shares. So its share price is quite high, tens of thousands of dollars per share. Because of this, its investors are powerful institutions, funds that can be trusted for a long time, and funds that really value the investment ability of Pakistan and Laos. The potential experience of the capital market tells us that the lower the stock price, the greater the possibility of double speculation (of course, the greater the possibility of risk).

So high price does not mean fear, and low price does not mean value discovery. On the contrary, I think price is always the embodiment of intrinsic value and a reasonable valuation of the market.