What does the fund split mean? Why split the fund?

Fund split, also known as split fund, refers to a way to change the corresponding relationship between the net value of fund shares and the total amount of fund shares and recalculate the fund assets on the premise of keeping the total assets of fund investors unchanged.

Why split the fund?

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.

Split funds mainly have excellent past performance and high net worth. In order to meet the psychological needs of investors and break the market paradox, investors can buy good funds at relatively cheap prices. The split of fund shares can also effectively solve the problem of "compulsory dividend", effectively reduce transaction costs and reduce the influence of day trading on the securities market.

Therefore, these old funds with excellent performance and relatively small scale may choose to split the fund and attract more investors to improve the holder structure and fund size without affecting the original holders. The size of the split fund is generally small, and the expansion of the scale after the split is conducive to the operation of the fund.