Regarding the arbitrage strategies of LOF funds, there is a detail here that many people easily confuse and need to clarify.

Many investors encounter situations where funds have high premiums and want to profit from this price difference. However, the conventional method is to subscribe off-exchange and then sell on-exchange, which is complex and time-consuming. In fact, there is a more direct way - directly subscribe to LOF funds on-exchange using a securities account.

Note that there is a crucial distinction here: on-market subscription ≠ on-market trading. If you directly buy funds with a high premium in the secondary market, the risks increase and the probability of losing money will be higher. The real arbitrage logic is as follows: subscribe at the fund's net value in the primary market (this is on-market subscription), and then immediately sell at a high price in the secondary market, earning the premium difference in between.

The operation is actually not complicated. Open any securities app, and there is a page for fund subscriptions; just find the function for on-site fund subscriptions. When you see that a certain LOF fund has a significant premium, you can operate according to this idea—subscribe in the primary market and arbitrage in the secondary market. This is much simpler than the traditional method of subscribing and then transferring custody.