At present, there are only two ways to obtain fund income, one is dividend and the other is redemption. If the fund performs well, some people hope to increase investment to get more returns. But the net value of the fund is too high, and if you buy it again, the cost will be higher-

1. As mentioned above, if the net worth is high, the subscription share will be less, and the dividend share will naturally be less;

2. Subscription requires a subscription fee, which is higher than the subscription fee. The more subscriptions, the more expenses. The fund does have a grade discount, but the minimum is 500 thousand, which I believe ordinary investors dare not take out easily.

3. Although the subscription fee can be exempted through dividend conversion, only the share base of the previous investment is large can snowball.

However, without long-term observation, who knows what this fund is like? How can you rashly invest huge sums of money? How to calculate the time cost and opportunity cost? Therefore, the split of the fund is obviously in line with the love of investors who want to save the subscription cost by increasing dividends, but don't want to pay high-priced subscription funds to save the input cost. On the other hand, those investors who want the fund's net value to grow rapidly and choose to redeem it will have to pay more redemption fees at this time because of the increase in their share during redemption. At the same time, for fund companies, this is also a business that earns less and loses more. Because although this will increase some redemption fees, it is estimated that most investors will choose to transfer dividends to avoid subscription fees, especially at present, there is a trend of increasing various fees.