I know the debate of Index funds versus manage funds - I got lucky and picked one that has outperformed S&P and DOW by more than 4% on a 10 year annualized basis. Knowing what I know now, and the chance of that happening, I'd invest in Index funds if I was just starting out. For now I'll just ride this wave - with some readjustments.

The question I have is, Why would a mutual fund split shares?

I know it makes no difference in NAV. Fund I have just recently split 10 for 1. Price goes from approx. $200 to about $20 per share. This is a fund with approx $30B in assets and is closed to new investors, so a lower price to physiologically attract new investors doesn't make sense.

With computerized trading is there any way a mutual fund company can take advantage of rounding? If the fund goes up $0.01 today that's equivalent to $0.10 last week. So if the underlying stocks go up the equivalent of $0.049 on last week's price - it doesn't affect the mutual fund price this week? Can that value be captured?

I know I'm missing something, someone smarter please help. TIA