But after many funds are split, they choose to pay dividends. In fact, this is to split the funds purchased during the split, which is not very desirable.
Fund split is a way to change the corresponding relationship between the net value of fund shares and the total amount of fund shares and recalculate fund assets on the premise of keeping the total assets of investors unchanged.
Suppose an investor holds A 10000 shares of the fund, and the current net fund share is 1.60 yuan, and its corresponding fund assets are1.60×10000 =16000 yuan. After splitting the fund according to the ratio of 1: 1.60, the net value of the fund becomes 1.00 yuan, and the fund share held by investors changes from the original 10000 to 1.6 = 16000.
Capital splitting sounds complicated, but it is actually very simple to understand. Generally speaking, it is the practice of splitting the fund share into several shares according to a certain proportion. For example, at a specific split point, the net fund value is 1.60 yuan. If the fund is split at this point, the split ratio is 65,438+0: 65,438+0.60, that is, the original 65,438+0 fund shares are split into 65,438+0.60 funds.
In overseas markets, fund share splitting is a very common marketing method. Their usual practice is to split the fund share when the net value of the fund share is high; When the net value of fund shares is low, the method of fund share consolidation is adopted. Many large fund management companies have split (merged) their funds many times, such as Pilgrim Funds, Rydex Funds, Eaton Vance and so on. In Asia, there have been many cases of fund share split (merger) in Singapore market.
After the split of the Fund, the fund assets of the original fund investors have not changed, and the investors' investments have not changed. Suppose investors hold 65,438+0,000 copies of Fund A, and the corresponding fund assets are currently 65,438+0, 600 yuan. After the split of the fund, the net value of the fund share decreased from 65,438+0.60 yuan to 65,438+0.00 yuan, while the fund share held by investors changed from 65,438+0.00 yuan to 65,438+0.600 yuan.