In this way, it is not difficult to understand why fund companies choose to split funds under the continuous callback of military funds.
We also know a method to reduce the net value of funds-fund dividends. However, capital splitting and dividends are completely different. Dividend means that the fund manager distributes part of the fund income to fund investors in the form of cash or fund shares, and needs to sell stocks to get cash. After dividends, the net value of the fund decreased, and the scale decreased accordingly.
The split of the fund does not require dividends, that is, the adjustment of the net worth to cater to investors' preference for low net worth.
But when we look back, the split of the fund is actually a marketing tool. The profitability of a fund has nothing to do with its net worth.
The net value of the fund is different from the price of Apple products. The fund holds a basket of stocks and bonds, and its net value fluctuates with the rise and fall of investments. The net value is determined by the investment ability of the fund manager.
It's not that high-net-worth funds don't go up, but low-net-worth funds go up fast!
Generally speaking, fund splitting can reduce investors' sensitivity to price, which is conducive to the continuous marketing of funds, but it will not affect our actual interests; But don't just look at the net value to buy a fund. The net value is not an inevitable factor to determine the value of the fund.