The government guidance fund, that is, the fund established under the leadership of the government, aims to attract investment and set up investment funds such as venture capital funds or private equity funds through the guidance fund. Therefore, the government guidance fund is also known as the fund of funds (FOF), that is, the investment fund that specializes in VC or PE funds. Because of its professional fund operation ability, FOF can act as a bridge between LP and GP, combine capital and management more effectively, diversify investment, reduce unsystematic risks, and make it easier for institutional investors to achieve stable growth of overall income.