According to UBS Asset Management Xia Kun: Hedge Fund FOF is More Suitable for Long-term Allocation published by Tian Tian Fund Network, hedge fund FOF can play the role of ballast or stabilizer in investors' long-term asset allocation, which is suitable for long-term holding and enjoys compound interest growth. Only suitable for long-term holding, there is no requirement for long-term holding.

Hedge funds refer to funds that use hedging transactions, also known as hedge funds or hedge funds. It refers to a financial fund that aims at profit after financial derivatives such as financial futures and financial options are combined with financial institutions.