Core Insights - The article discusses the concept of fund arbitrage, which involves exploiting price differences of the same asset in different markets to achieve profit through low buying and high selling [1] Group 1: Arbitrage Mechanism - The most common form of arbitrage mentioned is "on-exchange and off-exchange price difference arbitrage," where a LOF fund trades at 1.2 yuan in the market while its actual net value is only 1.0 yuan, resulting in a 20% premium [3] - Arbitrageurs can purchase the fund at the off-exchange net value of 1.0 yuan and sell it on-exchange at 1.2 yuan, thereby locking in the price difference instantly [4] Group 2: Risks and Considerations - The article emphasizes that this is not a guaranteed profit strategy; it involves risk arbitrage, where the key factors are speed and precision in calculations [4] - Investors must consider time costs (with a T+2 day settlement for purchases and redemptions), liquidity risks (the price may drop back to net value before the transfer), and the risk of arbitrage crowding (where many participants act simultaneously, causing the price difference to vanish) [4] Group 3: Investor Strategy - Ordinary investors are advised to observe rather than actively participate, using the price premium as an indicator of market sentiment (high premiums often signal overheating) rather than a daily profit tool [4]