Classification Fund Arbitrage Trading Research

After years of rapid development, the scale of the capital market is growing; kind of stock market investments are more and more. Which fund developing very rapidly, and the classification as a fund of funds structured products, is to become the new darling of the market. Relative to the General Fund, the classification funds are innovative products, is an open-end fund. It is based on a closed-end fund, the net assets of the Fund or the decomposition proceeds allocated share, thereby reducing the risk of investment.Currently, the Fund’s investment grade investors’ enthusiasm is high, however, can give them very little theoretical guidance. Scholars’ main characteristics and classification fund innovation, little research on the actual operation. Grading fund itself is a structured product which not only meets the low risk appetite of investors also meet high investor risk appetite. But also conforms to the development needs of the market. Based on the above, in order to allow investors a better understanding of the classification of funds, and to actively participate in the investment grade fund, in-depth analysis of this paper, the characteristics of the case classification of funds for investors to invest in three arbitrage strategy.This paper introduces the concept and its history classification fund, and then explains the features from the following five areas: 1.understand the basic classification of the fund’s shares; 2. grade analysis steady share of the Fund; 3. aggressive share third grade research funds; 4. followed by a conversion mechanism of pairing grading Fund; 5. Finally, research is regularly translated grading Fund. Based on a detailed understanding after more than a few aspects, and then were paired conversion from arbitrage and statistical arbitrage research methods and basic principles of the two basic aspects to introduce grading fund carry trades. Innovation of this paper is on the basis of previous, except for statistical arbitrage trade studies, and also for the carry trade pair conducted in-depth research, the carry trade speculators provide a richer theoretical basis.Combined with the actual situation in the investment market, this article will focus on the classification of the fund’s shares pair conversion mechanism analysis to analyze the basic arbitrage fund in favor of the classification scheme. For classification Fund Mother Fund and AB shares can split merge features, can be achieved by splitting the merger arbitrage and arbitrage opportunities are also available through the statistical arbitrage approach. I hope this article can be graded by the characteristics of the Fund through arbitrage applications, and more to make investors aware of the risk rating of the Fund and rational investment. Arbitrage is important as a means of stabilizing the discount or premium, investment grade fund arbitrage must be clear, and know when a high risk of the emergence of discount or premium grade fund is very large.