Fund split refers to a way to recalculate fund assets on the premise of keeping the total assets of investors unchanged. So, is the fund split beneficial? What's the difference with fund dividends?

Is the fund split beneficial?

Whether the split of funds is beneficial or not can be seen from the following two angles:

1 has no substantial impact on investors. After the fund is split, the fund share will increase and the unit net value will decrease, but the total assets will not change, which will not affect the expected income that the fund has achieved.

It's good for the company. In fact, fund splitting is just one of the marketing methods of fund companies. Because for ordinary investors, it is always believed that foundations with lower net worth have greater growth potential, fund companies will design funds to cater to the psychology of these investors, and more investors will come to buy and stimulate the fund to rise.

What's the difference with fund dividends?

There are the following differences between fund split and fund dividend:

1 Fund split is to change the total fund share and fund net value under the condition that the total assets of fund investors remain unchanged; Fund dividend is to distribute part of the income to fund investors in cash.

2 Fund splitting can adjust the net value of fund shares more accurately.