The FoF (fund of funds) invests in equity investment funds. Relying on the manager’s capability to optimize capital allocation, FoF rationally diversifies the investments into angel investment, VC and PE funds of different types and with diversified investment styles and excellent performance expectations, so as to reduce risks and share returns. FoF is an investment tool featured with high risk diversification and is a good choice for asset allocation. Investing in excellent fund portfolios and projects through excellent FoF management institutions will gain not only the weighted average rate of returns of all the funds, but also excess returns from outstanding projects.