First, regional funds aim to invest in specific regions, which can spread the political, economic and other systemic risks needed to invest in a single country. Although regional funds invest in the stock markets of various countries in the region, the risk is still higher than that of global funds because the stock markets in the region often fall together. However, if the stock market in the investment area happens to be bullish, investors may earn more than global equity funds. Common regional funds include funds in Europe, Asia and Latin America, all of which belong to this category. Because the stock market in the region often rises and falls together, the risk is still higher than that of global funds. However, if the stock market in the invested area happens to be bullish, investors' profits may be higher.

Second, the development of regional funds: regional funds have developed rapidly in recent years. Take the American market as an example. In the early 1970s, the activities of institutional investors in the US capital market, including various pension funds, were almost completely confined to China, with almost no overseas assets. At that time, the problem of securities portfolio and its internationalization strategy was actually just a topic discussed and brewed by securities analysts and academic circles. In the 1980s, the internationalization of the securities market and the securitization of international financing complemented each other, providing many opportunities for global investors. The foreign securities portfolio in the United States began to develop steadily, reaching 199 1, and the proportion of global securities flows in international capital flows rose from 1975- 1979 to 75%. In the 1990s, the global regional funds developed rapidly, among which the number of regional funds in the United States increased rapidly from 23 in190 to 203 in199, and the fund assets increased from $3 billion to $56,543.8 billion in199, with an average annual growth rate of 37.0%.