Pairing conversion of graded funds: Pairing conversion refers to the conversion between the parent fund shares and two types of sub-shares of graded funds according to the conversion rules stipulated in the fund contract, including share splitting and share merging. < /p > Split refers to the purchase of the parent share of the graded fund, and the split instruction is initiated at the venue to split the parent share into sub-shares according to the specified proportion, and then it can be sold at the market price. < /p > merger refers to buying sub-shares in the market according to the specified proportion, and issuing a merger instruction to merge the sub-shares into the parent shares, which can be redeemed at the net value later. < /p > Many < /p > graded funds < /p > in the market have a "matching conversion" clause, that is, investors can purchase in the primary market, and the secondary market will be split up according to the share ratio and then sold. As long as the difference between the net value of the primary market and the present value of the secondary market is greater than the transaction cost of "purchase, split and sell" or "buy, merge and redeem", investors can obtain expected annualized expected returns through arbitrage. < /p > The matching conversion business can be handled in the brokerage business department that has obtained the license from the regulatory authorities. < /p > overall premium of the fund = (A transaction price of Class A sub-fund × proportion of A share+transaction price of Class B sub-fund × proportion of B share) ÷ net value of the parent fund _ 1

When the overall premium is positive, split arbitrage can be carried out < /p > When the overall premium is negative, combined arbitrage can be carried out < /p > Note: arbitrage usually needs 3-.