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The large-cap


AIM Value fund will split its shares 3 for 1 on Nov. 10, AIM Funds announced Thursday.

That means the broker-sold funds' shareholders will get three shares for every one they own at the close of business that day. The move, which isn't a taxable event, won't raise or diminish the value of a shareholder's investment in the fund because the fund's net asset value, or share price, will be divided by three accordingly.

Although some investors might avoid funds with a high share price -- the fund's Class A shares closed at $42.62 on Wednesday -- a fund's share price is neither inherently positive nor negative. A fund's price is based on the underlying value of the stocks in the fund's portfolio. In other words, no matter what a fund's share price, a dollar invested will get the same return.

While some in the industry would agree that a share price above $20 can discourage investors, it's a tough case to make. The $105.6 billion


Vanguard 500 Index fund, the largest fund in the nation, had a $126 share price as of Wednesday's close.

Although splits for shares of a company's stock don't have any bearing on a company's actual value either, the argument for stock-share splits is better: Since stocks often have to be bought in round lots, reducing a stock's share price makes it more accessible to modest investors. But this argument doesn't work for funds, where investors buy dollar amounts, not blocks of shares.

See this Dear Dagen column,

With Mutual Funds, Splitting Shares Is Splitting Hairs, for more on share splits.