1. The significance of capital splitting
Fund splitting is a common operation mode, which can reduce the subscription price of each fund and facilitate small investors to invest. Through fund splitting, investors can buy more stocks with less money, thus gaining more income. Fund splitting can also increase the liquidity of funds and improve the market competitiveness of funds.
2. Interpretation of the proportion of capital division
The fund split ratio refers to the ratio of the face value of each share before and after the split. For example, if the fund split ratio is 20, it means that the par value of each share after split is 1/20 before split. In this way, the price of each unit will be reduced and the number of shares will increase accordingly. For example, if the par value of each share of a fund before the split is 100 yuan and the split ratio is 20, then the par value of each share after the split becomes 5 yuan, and the number of shares increases by 20 times.
3. Motivation of fund division
Fund splitting is usually carried out under the condition of good fund performance. When the net value of the fund continues to rise, the fund company may choose to split up to attract more investors to participate. This can effectively expand the scale of the fund, increase the liquidity of the fund and provide investors with more convenient investment opportunities. Fund splitting can also enhance the visibility and market competitiveness of fund companies.
4. The impact of capital division
For investors, the main influence of fund splitting lies in the change of subscription price and the number of shares held by each fund. After the split, the par value of each share is reduced, and investors can buy more shares with less money, thus lowering the investment threshold.
The split of funds may also have an impact on the liquidity of funds and transaction costs. Because fund splitting will increase the number of shares, investors may find their counterparties more easily when buying and selling funds, and improve the liquidity of funds. Fund splitting can also reduce the transaction cost of funds, because the price of each fund is lower, and investors can choose the number of shares to buy or sell more flexibly when trading.
5. Problems that investors should pay attention to
When splitting funds, investors need to pay attention to the following issues:
Fund splitting will not affect the actual value of the fund, but only change the face value and share number of each fund. Investors should pay more attention to the fundamentals and long-term performance of the fund, rather than blindly following the trend because of the split of the fund.
After the fund is split, the price of each fund will decrease, but the share held by investors will increase accordingly. The total value of shares held by investors in the split fund has not changed, but it has been dispersed into more shares.
Capital splitting is not a once-and-for-all operation. Fund companies may split or merge again according to market conditions and changes in fund scale. Investors need to pay close attention to the announcements and changes of fund companies and adjust their investment strategies in time.
Fund splitting is a common operation mode. By lowering the subscription price of each fund, it is convenient for small investors to invest and improves the liquidity and market competitiveness of funds. When choosing a fund, investors should comprehensively consider the fundamentals, long-term performance, split ratio and other factors of the fund in order to make wise investment decisions.