Investors do not directly invest in equity investment funds, but indirectly invest in equity investment funds through parent funds. There are four main reasons: risk diversification, professional management, investment opportunities and scale advantages. (1) diversified risk parent funds usually invest the raised funds in 15 ~ 25 equity investment funds, avoiding the risk of relying on one fund manager in the investment of a single equity investment fund. By spreading to multiple equity investment funds, the investment of the parent fund can be diversified, such as investment stage, time span, region, industry and investment style, so that investors can effectively spread risks. However, a single equity investment fund cannot make investors obtain such high diversity. (2) Professional management of investment equity investment funds is a highly professional job. Direct investment in equity investment funds, even if investors have knowledge of one aspect of fund investment, may lose investment opportunities or lead to investment failure due to lack of understanding of other aspects. However, the parent fund manager usually has comprehensive knowledge, contacts and resources of equity investment, and it is easier for the parent fund to make correct investment decisions than other investors when investing in equity investment funds. The parent fund provides inexperienced investors with a channel to invest in equity investment funds. (III) Investment Opportunities Most stock investment funds with outstanding performance will be oversubscribed, making it difficult for ordinary investors to obtain investment opportunities. As a professional investor in equity investment funds, the parent fund usually has a good long-term relationship with equity investment funds, so it has the opportunity to invest in these excellent funds. Investors get the opportunity to invest in excellent funds by investing in the parent fund. (4) Scale advantage When investing in equity investment funds, the investment scale is often a problem. Investors' funds are often too big or too small to make proper investments. Parent funds can solve this problem by helping investors "shrink" or "expand": on the one hand, parent funds can help large investors invest in small-scale funds, thus saving costs and diversifying investment; On the other hand, the parent fund can help small investors to invest in large-scale funds, thus reaching the investment threshold of large funds. The parent fund usually has a considerable scale and can attract, retain and hire the best investment management talents in the industry. Small and medium-sized investors rarely have enough resources to build investment teams of similar size and quality. Considering the management costs such as salary and travel, it is more economical and effective to invest in the parent fund than to hire a team dedicated to investing in equity investment funds.