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What is capital division? What is the rate of return after the split?
For some investors who prefer low-net-worth funds, the split subscription of high-quality old funds is undoubtedly good news. The so-called 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 the fund assets on the premise of keeping the total assets of fund investors unchanged. Suppose an investor holds 654.38+00,000 copies of Fund A, and the current net fund share is 2 yuan, and its corresponding fund assets are 2× 654.38+00,000 = 20,000 yuan. After the fund is split according to the ratio of 65,438+0: 2, the net value of the fund becomes 65,438+0 yuan, while the fund shares held by investors change from 65,438+0,000 to 20,000, and the corresponding fund assets are still 20,000 yuan, and the asset size remains unchanged. After the fund is split, the original portfolio remains unchanged, the fund manager remains unchanged, the fund share increases, and the net value of unit share decreases, just like the "stock sale" of stocks, and it can also compete with low-net-worth funds on the same starting line. It is worth mentioning that because the old funds have past performance as a reference, investors can be targeted when choosing, and the funds that can get the split "passport" are excellent varieties that have been tested by the market for a period of time. Both the operation level of fund managers and the running-in of fund investment and research teams have obvious advantages over those new funds without any historical performance. From this perspective, fund splitting provides investors with a good opportunity to buy high-quality old funds. For example, Everbright Prudential Fund Management Company's Everbright Prudential Quantitative Core Fund (rated as "four-star fund" by Morningstar (China) for its excellent performance in the past year) was split on May 8th. Its unit net value is about 2.6050 yuan. After the split, the unit net value will be adjusted to 1 yuan. If the original investor holds 20,000 yuan of the Fund, the fund share will increase after the split, but the amount will remain unchanged.