The advantage of LOF fund is that after purchasing this fund, investors can purchase and redeem fund shares at designated outlets, or buy and sell funds on exchanges, which is low in cost, flexible and fast, and can arbitrage; Its disadvantage is that if investors are not sure about arbitrage, they will not only lose money, but also lose money.

LOF fund arbitrage skills: If the price of on-site LOF is higher than that of off-site LOF, you can buy it off-site and then transfer it to on-site sales. If the price of LOF in the market is lower than that of OTC funds, it will be bought in the secondary market and redeemed over the counter.

Investors have subscribed for an LOF fund, and the share will be confirmed on T+2, so as long as the price of the fund in the market is greater than the net purchase value, risk-free arbitrage can be carried out from the day when the LOF fund is subscribed. On the other hand, if the secondary market price is lower than the net value, buy it in the secondary market and redeem it when the price and value are quite different.