The higher the money fund premium, the better. Investors can arbitrage by trading the premium rate of the money fund, that is, when the price of the money fund in the market is greater than the net value, investors will buy a basket of stocks from the secondary market, then convert them into money fund shares in the primary market according to the net value, and then sell the money fund at a high price in the secondary market to complete arbitrage.

It should be noted that the premium rate must at least cover the transaction cost, and arbitrage can be profitable. Transaction costs include the purchase cost of a basket of stocks.