In order to realize hedging strategy, hedge strategy funds generally meet the following requirements:

(1) Hedge strategy funds invest in stable assets not less than 80% of the fund's net asset value, so as to obtain stable income and try to avoid the loss of due investment principal.

(2) The average remaining term of a sound asset portfolio shall not exceed the term of the remaining hedging strategy.

(3) Assets other than sound assets are risky assets, and fund managers should establish objective research methods, prudently establish an alternative pool of risky assets, and adopt a moderately diversified investment strategy.

(4) Fund managers should carefully determine the investment proportion of risky assets.

(5) Select commercial banks and insurance companies that meet the requirements of prudential supervision as the guarantee obligors of the Fund.

Knowledge points: risk management of index funds and ETFs;