When the spot price is greater than the net value of the fund, we call it a premium, and when the spot price is less than the net value of the fund, we call it a discount. In both cases, LOF funds usually have arbitrage opportunities.
1, shortly after product transformation or new product listing, when there are few arbitrageurs, when new product listing or product transformation, many investors are unfamiliar with the rules (normal investment) and there are few arbitrageurs, resulting in a large deviation between the initial price and the actual net value.
If the E Fund is classified according to SSE 50, it will be listed and traded on April 27th, 20 15. If you buy at a price close to the closing price of the day, you can redeem it at the net value (updated net value of the day) before the closing price. The redemption fee after deducting the cost, the premium and premium rate after arbitrage are basically included, and there is no room for arbitrage, that is, taking advantage of others' unfamiliarity with trading rules to make profits.
2. When the market is crazy and the discount premium in the market is high.
When the market is crazy, such as a short-term bull market and a stock market crash bear market, it is easy to have a large premium or discount, thus generating arbitrage opportunities.
Let's take Guangfa's small-cap stock LOF as an example. On July 8, 20 15, due to market panic, the price of Guangfa small-cap market plummeted. If you buy at the price of the day and redeem it with the net value of the 9 th, you can get arbitrage income.